I just installed HBC1.06 on my Wii 3.2U yesterday using Bannerbomb without any issues.
Try another SD with larger capacity, as you may need to back up your Wii nand, which is strongly recommended.
@Xdqwerty, Osu! Tatakae! Ouendan! is the Japanese version of the game, different settings/characters/songs but otherwise identical mechanics. I played that before I knew about Elite Beat Agents lol. Both fantastic games https://en.wikipedia.org/wiki/Osu!_Tatakae!_Ouendan