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Thanks for the responses everyone.
I stopped using the USB Loader GX channel and decided to try the regular app that is getting updated more frequently. I made sure I was at the latest revision (570) and I reinstalled cios version 13a just to test it out. I found that I had none of the problems that I had in the past. This version has no issues reading my hard drive and also does not seem to have the problems with the newest cios (13a not 13b). It loads games one right after the other without having to turn off the Wii including the latest games like Indiana Jones, Ghostbusters and the Conduit. I have since uninstalled the channel and installed the Forwarder instead.
I figured that I would share this information for anyone having similar problems.
BTW: 4.0U softmod, cios38rev13a, HBC 1.0.3, USB Loader GX r570
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