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file manager---->memory card----> options---->format memory card.....
this may not be exact but youll get it...
btw formatting the memory card deletes ALL data
so make sure that you at least save contacts to the phone memory
or to your pc before.......(contacts are found in memory card---->others)
Menu > Applications > File Manager > Open the memory card by tapping it twice (you will see a list of folders) > Options > Memory card options > Format.
All data will be wiped from the card so do not format unless you are certain that you have back ups of it's content.
If you have a card reader on a PC you can also format it using the computer.