Bootmii install issue v0.8

Im trying to install the Bootmii as boot2, but I can't seem to get past the second part. HBC installed ok, now i moved onto the Bootmii and after it installed the necessary files on my 2gb SD card, it then goes ahead and tries to install the rest of it. It doesn't look like it passes the "usable NAND" block test. Just says:

Block 6 failed test: -119997888
Block 7 failed test: -119997888
Not enough usable boot2 NAND blocks (1)

Failed (-2)

What does this mean?

My wii is on 3.4U
S/N: LU33...
2gb SD card

You probably have some bad blocks early in the NAND filesystem. There is nothing that can be done about it, aside from replacing the Wii's internal memory.

For some reason, when im presented with the option to install as Boot2 or IOS, the IOS has "uninstall..." underneath it. Is it possible it is already installed? How?
Should i uninstall it and then try Boot2 install again?

Is it ok to install the IOS method then if for some reason there is a way to copy bootmii to my boot2, i can safely uninstall the IOS bootmii and carry on with the boot2 install?

BootMii/IOS is automatically installed when you run HackMii Installer, so you already have it, and will have it any time you run HackMii Installer.