Step by Step
1. Begin by formatting your SD card to FAT16 if it is not already (in Windows it's just called "FAT"). FAT32 should also work in the latest release.
* If you get an error such as "Failed to read boot.elf (-1)!" then reformatting your SD card with the Official SD Card Format Tool may help.
* To do this on Mac OS X, open the Disk Utility (in Finder click the Go menu, select Utilities and find it there). Your SD card should show up as two entries. Choose the second entry, and then go to the Erase tab. Select the FAT16 option in the Volume Format dropdown, and assign a name to the device (if you want to), then click Erase. Confirm that you want to erase, and then follow the rest of this guide when it's done.
2. Copy the "private" directory from the download to your SD card.
3. Take your homebrew Wii executable (elf or dol file) and save it in the root directory of your SD card as "boot.elf" or "boot.dol" as appropriate.
4. Now, put the SD card into your Wii and turn it on.
5. Go into Wii Options --> Data Management --> Save Data --> Wii.
6. Find your Zelda save, click on it, click "Erase", and click Yes.
7. Open the SD card and select the "Twilight Hack" save that corresponds to your game region.
8. Click copy and then yes. Now exit out of the menu.
9. Insert The Legend of Zelda: Twilight Princess game disc and run the game.
* If you have the USA version of the game, load the "TwilightHack0" or "TwilightHack2" version of the game as appropriate (see above).
* Otherwise, load the only "Twilight Hack" save game.
10. Once in the game, either walk backwards or talk to the man standing in front of you.
11. Enjoy.
not my step by step...this is from the wiibrew site...it got my homebrew channel working as i had same prob as you using the iso version.i think it has something to do with what chip you have,it worked perfect on my mates wii with a wiikey chip using the same dvd iso i tried.