I'd see if the thing's readable under linux first (bootable knoppix, ubuntu live CD and the like, or even PartedMagic CD if you want a small but decent one), windows can be naff with damaged filesystems :p
I'm not so sure you can repartition SD devices like you can normal USB devices - even repartitioning USB sticks (not HDs, they show up as a different class of hardware to the computer) is dodgy since Windows refuses to access beyond the first partition. It's ok if you want to hide linux-only stuff on a second partition though :p In any case, I doubt deleting and recreating the partition will help if the file allocation table itself inside the partition is corrupt - doing such a thing won't fix the corruption. You're best off getting the thing readable and copying the contents elsewhere, then reformat (all outside of Windows) :p