After spending a ton of time researching sdcard interfacing, perils of voltage shifting and with the help of Charles MacDonald getting the Genesis C compiler working on System 24, I have successfully read a file from a SD Card. whoo hoo.
This is only proof of concept as the hardware is very slow receiving data and all the C sdcard and fat16/32 code will need rewriting in assembler. Hopefully a change from a FET to a 74ls05 will improve the speed.