It was expected...every time you update through nintendo you will lose the homebrew channel, cIOSs, and bootmii depending on what version of boot2 you have installed.
Sorry man, I posted that while still half asleep and didn't read your post well enough I guess.
As far as I know your warranty is no good if they detect homebrew on the console. In the OP's case I think his main concern would be priiloader leaving things behind in the NAND but I'm sure there...
If you update the console through Nintendo you'll lose some of the functionality. For example updating the system menu would remove priiloader which would have to be re-installed afterwards. At this point no one knows what might or might not come in the next system update but it will likely...
I don't understand why so many people have problems with that game.
It is working fine for me and has been since rev80. Use a 1:1 copy of the game and it should work fine.
Step 1: Use bannerbomb (http://sites.google.com/site/completesg/exploits/bannerbomb) to run the Hackmii installer (http://bootmii.org/download/). Install the homebrew channel and bootmii as an IOS.
Next step will depend on how you want to load out of region games.
- If you want to load them...
There is a ocarina code for unlocking everything. Create a new save file and launch the game from a loader that supports cheat codes. When you select that save file it will unlock everything for you and you'll be able to go online with it.
For friends: Drink with me, Smoke with me, feed me. I'll do it for "free" but I expect a meal or a few drinks in return.
For friends of friends: I charge them $10 and hour and it usually comes up between $20 and $30.
I do a lot more than running the hackmii installer. I set-up everything...