Play Downloaded Wii Games Usb Loader Gx

Wii U Homebrew Freware Apps & Games for U: Compatible HDD and SSD drives for USB Loader: Nintendo Wii U Games how to download latest titles: WiiU Downloads. I’ve been running Homebrew on my Wii for quite some time, which also gives me the ability to play backed up games from a USB hard drive. Connecting an external hard drive to your Wii to back up and play your games is a simple way to keep expensive discs out of harms way, decrease game load times, and organize your collection with.
Hey all, I'm fairly new to homebrew and softmodding my Wii.
Here's my situation so far:

-My wii was recently homebrewed.
-I downloaded cIOS 249 and cIOS 250
-I downloaded Wad Manager and created a full channel for USB Loader GX (which ALLEGEDLY supports NTFS format).
-My current USB setup (which doesn't work) is NTFS format with a 4098 kb write speed. I have an apps folder that contains a folder for USB Loader GX and Nintendont. I also have a games folder with the correct configuration for Super Smash Bros Melee (I use the same setup on a 4gb sd card that works, but doesn't work on my USB setup).
Usb Loader Gx Wii Iso
I suppose my question is, how do I setup my USB flash drive to play games? Do I have to convert my iso files to something else? Where do I put the game files to get USB Loader GX to recognize it? My Wii does in fact recognize my flash drive, as evidenced on the USB Loader GX full channel telling me that I have 115 GB out of 116 GB free on the bottom screen.
I noticed when I tried downloading Mario Kart Wii from the disk on USB Loader GX that it saved as a WBFS file on my USB and DID show up as a game on my menu. The file didn't download properly, as it seemed to have froze at 100% so I reset my system, so I cannot play Mario Kart Wii through USB Loader GX.
I'm just at a loss for what to do. I've gone on so many guides and forums telling me to download all these files and all these programs only to scroll down more and see that it is only for FAT32 format. I know people can attach hard drives full of game files, so why can't I use a flash drive? Can I use my NTFS formatted USB or do I need to force it with some program to format as FAT32? If I can, how should I setup my USB?