I suspect something is amiss with your Wii. I ran through the process myself and received no errors.
This just makes me more convinced you have cIOSCORP installed.
If you want to install hbc you will have to locate and run an uncioscorp application to run using bannerbomb to remove this nasty application from your Wii. cIOSCORP makes it such that you can't downgrade or change any IOS using normal methods. I can't work out why you need cIOSCORP as your modchip is all you need to play backups in disc channel.
You need to look at maybe this http://www.wiihacks.com/wii-custom-s...-3-3-here.html
The latest cIOSCORP is 3.4 and apparently that come with uninstall routines.
cIOSCORP is Fail.