Preloader only works on fw 3.2 and 4.x which is why you're getting an error. You need to upgrade to a compatible firmware.
Here's a guide for safely updating to 4.1 (Do not update to 4.2): http://www.wiihacks.com/recommended-...l-working.html
Preloader has been abandoned and assumed by a new group. Here's more information on Priiloader: http://www.wiihacks.com/other-faq-gu...preloader.html