That should be a clear indication to go with FAT32. That way you don't have to format it again later if you change your mind and want to use FAT32 for something (emulation, WiiMC videos, just as a backup storage option for PC files if you ever need it)....no sense in wasting the WBFS space and only being able to use it for Wii games.(perhaps with a small Fat32 partition for applications but I dont mind sticking with an sd card for that).
Just my opinion based on my experience with FAT32. As far as reliability and game playback WBFS is no better then FAT32....actually to be quite honest I can't think of a single reason why WBFS would be preferred over FAT32.
No problems there, Insert disc, rip with Cfg loader...done.Any Games I add to the hdd will be done via the wii itself.