First, don't hijack a year-old thread. I moved this to your own thread.
Does the system have priiloader installed or have bootmii installed as boot2?
I'm guessing the answer to priiloader was no, if it was able to be updated, but that could be that it was installed but not properly configured.
What menu level is it? Can you access Wii Menu?
You'll have to remod it to get everything back, but depending on the answers to these questions changes how we attack this remod.