I'm using 16GB cards. It's possible, and really just a matter of following the simple arithmetic in the directions.
From http://www.gumstix.org/create-a-bootable-microsd-card.html :
Next, set the geometry to 255 heads, 63 sectors and a calculated value for the number of cylinders required for the particular microSD card. To calculate the number of cylinders, take the 2032664576 bytes reported above by fdisk, divide by 255 heads, 63 sectors and 512 bytes per sector: 2032664576 / 255 / 63 / 512 = 247.12 which we round·down to 247 cylinders.