i believe he is referring to using backup loader 0.3 to run the game off of a burned disc.
i am having this exact same issue with a friend's wii. i'm running 4.1U and i installed cios 38 rev 14. neogamma (R6) loads the game, but after a seemingly random period of time, i get a disc read error. i ran through the entire soft mod process again to make sure i didn't miss anything, and i'm still having the same problem. : /
edit: we need to use neogamma as opposed to usbloader on that wii because he doesn't have a hard drive he can dedicate to wbfs.
the game runs fine on my wii using usbloader and neogamma, and i used the exact same process to mod my own. i have no clue what the problem could possibly be.