So that is where my confusion is. When you say "CFW sysNAND", when I turn on my 3DS and I'm looking at what appears to be my sysNAND (my formatted original NAND with nothing on it) is the really the "CFW sysNAND"? (I think it's the terminology that is confusing me).
CFW means that all the patches like being able to pirate games or use homebrew cias is running. You can test it by installing the homebrew loader cia and seeing if you can start it in CFW sysNAND. If it doesn't show up or start, you probably missed a setting in Cakes or something is wrong.