Here is EXACTLY what I did.
1) Installed boot me as boot and IOS
2) Installed HBC
How to Downgrade Wii Version 4.2 to 3.2 (Works for All Regions U, E, and J)
[ How to Downgrade System Menu ]
Step 1: Removing IOS 249 Stub
1. Run HBC and open up Wad Manager.
2. Choose to use IOS 250 and press A.
3. Choose the Wii SD Slot.
4. Make sure IOS 249.wad is selected and press A.
5. Press Right on your D-Pad until it shows “Uninstall Wad”
6. Press A.
7. When finished, exit back to HBC.
Step 2: Installing CIOS 249
1. In HBC, press the Home button on the Wiimote and select “Launch Bootmii”. (If not Install BootMii as IOS in HackMii Installer)
2. cBoot2 will load up and that will load Waninkoko’s CIOS Installer.
3. Select to use “IOS 36” or “Do not reload IOS” and press A.
4. Agree to the crap and press A.
5. Choose “Network Installation” and press A. (Must have Wii Connected to the Internet)
6. Make sure the install succeeds and the press any key to exit to HBC.
Step 3: Downgrading IOS
1. In HBC, run the IOS Downgrader.
2. When it loads up, press A to start the downgrade.
3. Make sure that all of the IOS finish with an OK.
4. When it’s all done, press any key to go back to HBC or to System Menu.
Step 4: Downgrading to 3.2U
1. In HBC, run the AnyRegion Changer.
2. When you get to the menu, choose “Install System Menu 3.2”.
3. When asked if you’re sure, choose yes.
4. When it asks if you want Korean Disc Support, choose no.
5. When it asks if you want System Menu Hacks, choose yes.
6. When everything finishes, press any key and it will take you to its menu again.
7. In the menu, choose “Reboot to System Menu” and press A.
Congratulations your Now on Wii System Menu Version 3.2
Then when all done did the HBC and ran the Firmware Updater v4.1 Waninkoko