Holding down the reset button is preloader there is no channel if it is asking you to update all you need to do is turn on the preloader hacks on for skiping the disc updater. that message is normal when installing preloader for the first time on 4.0 just reinstall it and all should be fine but if you got it working then thats fine did you install anything before updating to 4.0 like cioscorp.
for the hack to work open a new notepad in windows copy below and paste into notepad and rename it hacks.ini then place in root of memory stick the it should be in hacks on preloader
[Replace Healthwarning with Backmenu]
version=418
offset=0x816561E4
value=0x814093D0
[No health check]
version=418
offset=0x813BCCBC
value=0x48000034
[Skip disc update check]
version=418
offset=0x8137EE54
value=0x60000000
offset=0x8137EE58
value=0x60000000
offset=0x8137EDFC
value=0x60000000
offset=0x8137EE00
value=0x60000000
offset=0x8137ED54
value=0x60000000
offset=0x8137ED58
value=0x60000000
[No sound at all]
version=418
offset=0x8136AD44
value=0x4E800020
[No Menu BGM Startpatch version]
version=418
offset=0x8136AD70
value=0x4E800020
[Move Disc Channel]
version=418
offset=0x813AF484
value=0x60000000
[IOS Reload]
version=418
offset=0x8137B8C8
value=0x3B200001
offset=0x8137B8CC
value=0x3B0000F9
[Region free channels_1]
version=418
offset=0x8152D194
value=0x60000000
offset=0x81530640
value=0x4E800020
[Region free channels_2]
version=418
offset=0x8152D67C,0x813B60F0
value=0x38000001,0x48000028
[Remove diag disc check]
version=418
offset=0x8137944C
value=0x60000000
[Autoboot Game press RIGHT on gc pad in 4th port]
version=418
offset=0x8137A818,0x8137944C
value=0x2C000002,0x60000000
[Disc auto start when right pressed]
version=418
offset=0x8137A818
value=0x2C000002
[Autoboot Game]
version=418
offset=0x8137A800,0x8137944C
value=0x48000020,0x60000000
[Disc autostart]
version=418
offset=0x8137A800
value=0x48000020
[Region free channels-SD card menu]
version=418
offset=0x81530640
value=0x4E800020
[Region Free Wii Discs]
version=418
offset=0x8137D428
value=0x60000000
[region free Wii games_1]
version=418
offset=0x8137D704,0x8137D6E4
value=0x4800001C,0x38000001
[Region free Wii games_2]
version=418
offset=0x8137D420
value=0x38000001
offset=0x8137D6E4
value=0x38000001
offset=0x8137F4B4
value=0x38600001
[Region free GC Games]
version=418
offset=0x8137D428,0x8137D42C
value=0x900DA5D8,0x38000032
[Force Disc Region_1]
version=418
offset=0x8137D704
value=0x4800001C
offset=0x8137D728
value=0x60000000
[Force Disc Region_2]
version=418
offset=0x8137D660,0x8137D664
value=0x3C608000,0x936300CC
[Remove NoCopy Protection]
version=418
offset=0x813C4D84
value=0x7C000000
offset=0x813C4D88
value=0x4182001C
offset=0x8134E254
value=0x7C000000
offset=0x815C1C44
value=0x38600001
offset=0x81353E6C
value=3BE00000
offset=0x8134E264
value=0x801C0024
offset=0x8134E268
value=0x5400003C
offset=0x8134E26C
value=0x901C0024
offset=0x8134E270
value=0x48000018
[Error cannot load channel]
version=418
offset=0x8137D6E4
value=0x38000001
offset=0x8137F4B4
value=0x38600001
[Blackscreen at Wii system menu Startup!]
version=418
offset=0x8137A828
value=0x60000000
[DSI Error code at Wii system menu Startup!]
version=418
offset=0x8137A7AC,0x8137A7B0,0x8137A7B4,0x8137A7B8,0x8137A7BC,0x8137A7C0,0x8137A
4,0x8137A7C8,0x8137A7CC,0x8137A7D0,0x8137A7D4,0x8137A7D8,0x8137A7DC,0x8137A7E0,0
8137A7E4
value=0x3C80CD00,0x80646404,0x80846408,0x74630800,0x40A20008,0x48000008,0x3AC000
,0x60000000,0x60000000,0x60000000,0x60000000,0x60000000,0x60000000,0x60000000,0x
0000000