on your SD card (or usb, if you don't use SD card at all), in apps/usbloader_gx/ folder you have all the files used by the loader.
The meta.xml is used by HBC to display the homebrew information, but that file also contains some settings used by the USBLoader at launch.
You can find an original (unedited) meta.xml
here or from my signature.
If you don't have revision 1262, you can update the loader too (replace the boot.dol file from the link in my signature)
So, you can go into the settings? and see games settings? so you can launch the loader without freezes now?
Sorry, your explanations seems confused to me.
What I understand :
You have the homebrew on your SD card.
booting the loader freezes at "loading settings" if you have the USB connected?
If you manage to boot the loader (without usb ?) you can list games
if you go to game settings or general settings, exiting back to the main window freezes/lag ...
it looks like an issue from an old version.
Are you sure you use 125x ?
Please don't use 1252 to 1259, these version are unstable and can corrupt and delete your partition.