I installed the homebrew channel a good 6 months ago. Once it's all setup it will auto update itself. Recently Nintendo released a system update so you can read the sd card as channels and not have to move the data back and forth.

I found out about the update thru the nintendo channel, so I first ran the homebrew channel to make sure it was up to date, then I updated the software from nintendo to get the sd card update, no problems at all, worked like a charm.

I got a 2 gig SD card for like 10 bucks.... dumped alot of roms, emulators, downloaded homebrew apps and games, my own family pictures for that picture channel, downloaded Wiiware channels, anything I could think of.... only took up 1/2 of the card, still have arround a gig free. I highly recommend getting a 2 gig card, you'll never have to worry about a space issue for a long time.

If you have any problems then drop me a PM and I"ll help you out.... it was a piece of cake.