I've tried several times on several different discs and i cannot get the update to work. It says that it saves settings for the region override but when I try an NTSC game (Wing Island) it does not boot. I've verified that i have an official genuine Wiikey so what could the problem be?
Several people are having the same issue where Wiikey will not update using the Setup DVD and NTSC-J games will not load on NTSC-U systems. I am one of them, I am waiting on a responce from Wiikey.cn but from what I understand it can mean you have a clone or the chip is damamged.
make sure your wiikey is not a clone. Where did you purchase it from? did you purchase it from an official reseller? if you got it from divineo.cn it looks like they are selliing clones and real wiikeys at the same time. The original wiikey should not have a problem updating. Only the clones don't update. unless somehow your "original" wiikey is messed up, i think its a clone. take a pic and show it to us.
Btw i have the japanese version of wing island, and its working flawlessly with my wiikey so you shouldn't have a problem playing it after the update, unless you have a clone.