Hi Citabria,
Have you tried the latest firmware download from
http://www.palm.com/us/support/downloads/treo700pupdate/index.htmlThe latest firmware appears to have some Bluetooth enhancements, so it may have the latest JAVA API's required to get GPSwatch working along with the Freedom Keychain reciever. It also allows the use of SDHC cards so it would also allow much larger memory cards to be used.
Hope this helps.