Still have Mini 0806. Still have the same problem with I/O error. Last week I switched card source from Auto to card B. No luck even worse. Beeping sound after each power on. Back to Auto but camera freezing all the time, beeping can not use it :( My solution: did camera hard reset+format...
also you have to check radiator. It cowers two chips on top board. One my camera had poor thermal compound contact and one chip ( opposite side Slot B) was always overheated.
http://www.mini0806.com/firmware/0806firmware-161115.zip
Update your camera with new firmware. It should solve that issue. Just unzip it and copy bin file to your empty SD card. Insert it to camera and select YES.
http://www.ebay.com/itm/182258537742
It should work. If you look at the first picture it shows 2.4A. It is enough strong to charge your iPhone and MINI.
"Blue light" issue it is Memory I/O error. Unfortunately it's not power related error.
Now it works in the test mode with my cell phone charger directly. I replaced radiator thermal compound. Will see... 2 hours no errors. Keep my fingers crossed.
My last step is reprogramming MINI0806 with DirectUSB PC soft. Erased all old firmware first and reprogrammed with stock firmware. No luck :( Same error.
I believe it is hardware degradation. What else? I can put new thermal compound to processor radiator or replace with new Li-on battery.