Personally, I'd download ModMii and just use that guide to update everything.
The problem sounds like you have DarkCORP installed and Priiloader doesn't want to use the CORP'd IOS when it installs. Short of doing a full update of all IOSes to effectively remove DarkCORP there are a couple of other options.
Install a clean IOS36 so Priiloader can install and then reinstall DarkCORP
Install cIOS236 and use the Priiloader v0.7 (236mod) found in ModMii (better choice if sticking with DarkCORP)
While I did use DarkCORP for a while and it had its place in Wii history, USB loaders are the better way to play your backups. Due to the nature of how DC works, it puts extra stress on your disc drive and will shorten the life of the drive. There are fewer and fewer drives available that can access the debugging mode used to read a backup disc so replacing with a DC compatible drive is increasingly difficult and more expensive.
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