im pretty sure a 1gb will work fine for a cople games and the loader. you could pobably use a 2gb card and have plenty of room for games and such. I downloaed it to my wii and after about 3 weeks took it off because it wouldnt work. If you like it a lot first app to download onto it is homebrew app downloader p.s. if you want there's a way to make bootloader not show up on startup. Can't remember name of app.
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I don't think there is an issue with using any type or size of memory( whether flash or HDD). But more memory means more games/apps I have installed an app called Mojo Pac. Google it.