I am extracting to the root of the sd card. I placed IOS60patched and System Menu v449 (4.1u) in the WAD folder. When I boot to the WAD Manager I select IOS36 and still get the same error when attempting to install IOS60patched but System Menu v449 (4.1u) installs perfectly fine. If theres anymore information you need to help me Ill gladly try to retrieve it. My Wii is a USA Launch system that was soft modded through the twilight princess hack.
Should I try installing different System Menus and IOS versions? I don't recall what version my Wii last was but I do know it was 4.x something