If you have a flaky wifi connection you can install the System Menu manually to update yourself using wad manager.
First install IOS60patched http://www.mediafire.com/download.php?l1mkiz2dn1l and then one of the following, whichever is appropriate for your region...
4.1E-RVL-WiiSystemmenu-v450.wad - 4.1, Europe, PAL
4.1U-RVL-WiiSystemmenu-v449.wad - 4.1, USA
4.1J-RVL-WiiSystemmenu-v448.wad - 4.1, Japan
When reporting errors it's always worth scribbling them down as they actually mean something. If it was 1036 then it's because you didn't install IOS60patched first.
For USB Loader GX you could be missing a cIOS or it could be badly installed. This would also compromise your IOS and updating. You may need to redo Trucha Bug restorer or TBR for short.