I know how frustrating it is to find the information you want sometimes (especially for those of you who are terrified of bricking). There's a lot out there for LU64 but LU65 people are still concerned. I don't know much about this stuff and props to Larry and all the others who actually post helpful things in a sea of noobs. I just figured I'd list what I did and how it works as I go along.
Then I installed HBC. This was easiest through Bootmii. So far the HBC worked, the xDVD or w/e I haven't touched, and Bootmii will come up, but you can't control the menu with the wiimote or the power/reset buttons. I haven't tried a gamecube controller (cos I don't have one) but I've read that nothing will work (they're not even hopeful ANYTHING will work).
Then I installed the LU64 fix. Just read the directions! Just like every1 else, I had a few problems and worries, but its cos I'd ignore the directions/miss a part. Follow it like you have no brain and you'll have no problems.
Then I got the USB Loader v1.2... I'm reformatting my 500GB HD (I have to back it up too so this'll take a little while), but in the meanwhile, I did two little tests. I tried backing up Wii Sports on a Sandisk 2G thumb drive and it went through the process, said it was a success, took up the space on the drive, but nothing was there. I then tried a 2G SD Card and SUCCESS. Backed up (like 5x quicker too) and booted the game with no problems at all. I'll let you'll know how the external HD works and keep you posted on everything else I add.
Update: USB loader v1.2 isn't backing up the games right. I got USB Loader GX and it does the trick. It can backup games to my WD 500Gb HD AND its pretty fast. NOTE: USB loader v1.2 can play the games once they're properly backed up.
To put games on/off my external HD with my computer (Ubuntu) I just followed the top half of THIS and it works great. Next up...WAD Manager and I think that's it!