The menu screen I'm looking at doesn't have any options for moving around with a D-pad. It's a series of instructions to set things like the region (NTSC/PAL) and resolution. All options are assigned to buttons, rather than any directional controls. I'll maybe take a pic tonight so you can see what I'm seeing.
If your on this screen scroll all the way down to the config, it should be the last one in the list.
It should take you to the config options
Once your on the config options menu, you can use the gc dpad to move left and right or up and down. Then save settings at the bottom when your done.
If you don't have either of those menu screens, it means your wiikey fusion was not configured by the dip switches on the wiikey fusion. You will likely have to open up the wii again and correctly config the dip switches to your region.
Ah, see I'm not on that screen - I'm on a WiiGator screen. I'll take a photo when I get home!
I may have found an answer through other means!
I'm going to try getting rid of WiiGator when I get home...
So wiigator is still on your system. after you get rid of it, it should be working.