Got it working! :D Thank you all for the information you've all provided.
After what trendkillsp said, I decided to just stay away from USB Loader GX for the time being. Wiiflow was the next best option, but still wasn't working. So I uninstalled everything from both loaders. Installed Hermes CIOS v5, and according their site:
Originally Posted by trendkillsp
"Some tests have shown us that putting IOS222 as global boot IOS of your loader has the best compatibility." http://sites.google.com/site/complet...os/hermes-cios
So I installed Wiiflow with IOS222, and it works flawlessly regardless of the drive format. NTFS, FAT32, and WBFS. Initially wanted NTFS, but unfortunately the current version of Wiiflow doesn't support Writing NTFS yet. So FAT32 was the best option. Have full read write capabilities and not a problem in sight.
For those who might use this as a resource in the future, Windows cannot format a drive with FAT32 that's larger than 32GB. However Linux has no problem with this, using a live CD and booting up Gparted works fantastically. Distro that is capable of this can be found here: Download | Ubuntu