I've actually tried this and I'm getting the exact 002 errors you're talking about. What I'm wondering is why these errors are present when booting through cIOS (on its lonesome, via disc channel) and not present when booting through a loader.
On top of that question, apparently 002 fix patches can be applied to games; is there a way to have the disc channel do this the same way I presume a loader does (as opposed to modifying the ISO before burning it)?
Yeah I can and possibly should get a chip/not be so adamant about booting all my games from the disc channel but just work with me. If at all possible. =P