I haven't checked the firmware version yet - but I will. I am also fairly sure I even tried formatting the card in the camera
You use a 2GB card ? -> format it in a card reader with FAT16 (not sure, but the cam could format 2GB cards with FAT32 - for CHDK you need FAT16).
-> Download the latest CHDK version again (there's only one fw available yet), use the small 32MB SD card shipped with your camera
-> use Cardtricks (look for it in the CHDK wikia), format & make the card bootable
-> expand all files & folders from the CHDK download to the card's root
-> lock the card & power on the cam (to go to record mode press the shutter once)