Punisher: Upgrading to 3.4 may not fix your problem. It might make it easier to source an uninstaller routine, that's all. Sounds to me like you have a compromised cIOSCORP installation which will really make a mess of playing anything. When it works it's fine but when it doesn't it's a real pain, it seems.
It's an absolute must to have bootmii installed as boot2 to mess around with cIOSCORP, and even then treat it with caution.
Please feedback on your ability to run games and load the hackmii installer.