I encountered the same problem using this tutorial just a short while ago but got around it.
Firstly, I ran the softmod as per the main instructions and no problem, tested with a backup.
I then went to run the steps as per the txt file about downgrading (in my case from 3.3e to 3.2e.....I got that exact same error (ret = -1022) on one of the screens, but continued onwards.
Checked system settings and it was reporting as 3.2e so seemingly a success....I do not know what that -1022 error is all about though as it appears to be working fine.
I then ran starfall and had a look in settings....and then installed the options to remove the health warning etc.
reset the box, no health warning etc...so it appears starfall is fine.
I then went to try a different game out.........got the DVD Read Error (349).....thought "bugger an incompatable title...."..... tried another disc and then the MySims game which worked fine before...all the same error. I knew these discs were all fine as use them often in my own chipped Wii.
So somewhere in between the downgrading to 3.2E and installing Starfall it screwed up the setup of the Backup Loader software.
So I went back to WADmanager and the ios16 and the backuploader (ie same as the instructions again up to the point of backup loader being on) went back to dashboard and now all is fine again.
Hope that helps some of you guys.
The only thing I've noticed is that video seems very choppy on cutscenes though game itself fine (MySims and Mario Galaxies). Well no "seems" about it - its very very choppy. I presume thats still a work in progress with the loaders as run fine with modchips?
Soooooo anyone know what the (ret = -1022) is all about while playing on this wii til I break it