this is not totaly true, if the person modding his/her wii wants to mess with dark corp. as far as i know this lets just about any wii to read burned disc.Just my 2 cents. If the wii is not old enough, it wont read burned discs period. Anything newer than around mid 08 production will not read burned discs. Also, burned discs strain the laser far faster than actual games. Your best bet, if you can get it to work, is to use cfg and an SD or USB HD. Good luck.
if op want to really do the step of setting his wii to factory settings, it's just as risky as modding, but work backwards from the modding.( remove prii..ect) an not be online at all, then use the wii's internal to format.. i've done it to mine an others. but at this point, it would be safer just to start at remodding.
an i don't think mod mii has the option to turn the wii back to "virgin".