I have a Twilight Hacked USA (NTSC) Wii and I can get backups to work just fine, but I have only tried NTSC ISOs, do PAL ISOs work as well, or is something else needed for that?
PAL games should work just fine providing your TV supports PAL output, other than that jus select Force NTSC from the loader and that should do the trick.
i play NTSC games on my PAL system all the time using GammA.