Just recently I was monkeying around and decided, just for shites and giggles, to install Swap Magic ver 3.3 onto HDLoader to see what would happen. The install goes well and I load it up. I swap in a CD backup and hit 'X'....much to my shock and rediculous surprise, THE DISC STARTS TO SPIN UP (which is different from the other SM versions, as they tend to crash with no disc spin up). Now, I'm not an expert on PS2 programming; I know jack squat compared to other HB programmers...but if I had to make a guess, I'd have to say the reason the games don't boot is due to a memory address conflict.
It's my personal belief that it might infact be possible to fix this issue (with the proper help), and have a fully functioning SM3v3.3 run directly off the Hard Drive. Thoughts, anyone?