Smoke20,
When you get "file error" messages, it's usually an indication that you have a hacked player. Considering also that you have a 8GB player, that also increases the chances of you having a hacked player.
I suggest you follow the instructions in this post here:
How To: Removing Memory Hack.
It will help remove the "file error" messages and if all goes well, you should be able to view jpg photos after that.
Let us know of the result.