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It sounds like your game disc is damaged. Does it have scratches on it? Do you get freezing at all during game play from the original disc?
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Similar issues. Ok to piggyback?
I'm running into some similar issues to what's been previously discussed in this thread. If I need to repost somewhere else though, please let me know. I setup my Wii with USB Loader GX, followed the Complete Softmod Guide to get the cIOS stuff configured. I say "stuff" because I don't fully understand what everything does, but I think I'm good at following instructions. My first attempt to install games from a disk were with a cheap-o usb drive that crashed completely after trying to load SSBB (smash bros). I blame it on being a super cheap drive. I formatted a 4GB Sandisk Cruzer via the instructions in the above posters signature. The Fat 32 guide. Since it's only 4gb I wasn't able to try SSBB as it's over 6gb. I was able to install 3 other games successfully and play them without a problem. So yesterday I decided I wanted to upgrade to a larger USB drive. I thought 32gb would be the sweet spot for me as I don't have many games, and would only ever want to play a handful at any time. I also thought I could save the install files on other hard drives and swap them out in batches whenever I wanted. So the drive I got a Walmart is a 32gb PNY p-fdu32g/appmt-ge (catchy I know). It's a very small shiny metal usb stick. Since it was sort of an impulse buy, I didn't check compatibility lists before hand. After I checked them recently, I don't see my drive on it so I'm unsure either way if it's compatible.
Here are my testing results which just further confuse me. I formatted the drive to Fat32 again using the same guide (I'm on a mac), copied my files from the 4gb drive to the 32gb, and then plugged it in to the bottom usb port of the wii (I lay my wii down flat). I lauched USB loader GX and the new PNY drive was recognized, the games showed up in my menu, and the free/total space was shown accurately. Awesome!...I thought. So I proceeded to install SSBB and it seemed to be going great, then it stalled at 100%. It took about 30-40 minutes to get to 100% so I let it try to finish up for about 20 minutes. It just stayed stalled so I rebooted the Wii and thought I would try again. Plugging the USB into my mac the drive was recognized. I had a SSBB folder with a .tmp file inside. This wasn't playable if I dropped the .tmp from the filename. So I reformatted and tried again. Now the drive just won't be recognized. I've tried removing everything but the original app files from the apps/usbloader.. folder and still no luck getting the freshly formatted PNY drive to show. My mac sees it everytime though, so it's not like my first cheap-o drive that just completely died.
If I plug the 4GB drive back in, everything works as it should, so it may be that I just need a new drive. But I thought I'd share my experience since these drives are cheap ($20), and easy to snag, and I hadn't seen much about their compatibility online so far. I also thought it couldn't hurt to see if anyone had advice on things I might try before returning the drive. Please let me know if a system check log would be helpful and I'll figure out how to post one.