Fresh from the error index.
SD/USB Loader Error Hardware not recognized. Most likely have a cIOS installed incorrectly, out of date, or missing. Possibly formatted the SD card or USB incorrectly, is unsupported, or not enough space.
Q. I have formatted the device correctly and have cIOS 36 rev 8+ but I am still getting this error; how would i fix this?
A. Be sure to have the device hooked up to the Wii before you power it on. You may lack USB support as well. Installing cIOS38rev14 would clear this up.
Wad Install Error Most likely have a cIOS installed incorrectly, out of date, or missing. If a file was needed, then it was not in the correct folder. If you are using cios38rev14 installer, put ios38-64-3610.wad file in the root of the SD card. Each programm needs its files in specific folders, so pay attention to that. Can also be a bad wad or not enough space on the Wii. Possibly formatted the SD card incorrectly.
edit: btw, are you using dogegg's guide? Which guide are you following?