WiiKey + Runic Frontier

I bought a Wii with a WiiKey in it off of Craigslist so my nephews could play their games when they come over. I didn't know what a WiiKey was until I got home after purchasing it and looked it up. Anyhow, my nephew today brought over a game called Runic Frontier. It required a system update to play and he asked to update it. Me not knowing said yes, and so he did. However now it doesn't read any games besides Runic Frontier. I purchased Mario Kart, Mario Galaxy 1 & 2, Paper Mario, Little King's Story from a used electronics store with a strict no return policy. I contacted the guy I bought it from and his response was "Your bad you shouldn't have updated it." I am now out nearly $150. Is there any way I can put the system back the way it was?

K I made a mistake on the game, its called Rune Factory: Tides of Destiny.
Searching for the last few hours suggested fixes were to softmod it. I gave the Wii to my sister as she is way more tech savvy. She said she was able to patch the IOS, but the boot1 is preventing the boot2 from being modified, and still doesn't play any of our discs except Runic Frontier. She asked me to ask you guys about it to see if you can help. Any ideas?