Granted I have never used this photo channel (my PCs very close by the TV and it connects up)
At least its optional so you dont need to download itUS, November 21, 2007 - Nintendo is planning an optional update to its Wii Photo Channel this December which will, if downloaded, replace MP3-music playback compatibility with support of the AAC audio format. In addition, gamers will be able to personalize their Wii Menu by replacing the Photo Channel icon with a digital picture of their own. Writes Nintendo on its official website: "Consumers with MP3 compatible Photo Channels will have the option of updating their Photo Channel to version 1.1, which replaces MP3 compatibility with the ability to play AAC files. AAC files provide a greater sound quality than an MP3 of the same size. This new compatibility will work with MP4 audio files in the .m4a format. Additionally, you can now choose to have the songs play back in a random order."
Any Wii consoles sold after December will automatically feature the latest version of Photo Channel. Gamers who already own the console will have the option to install the new update.
"Please note that once the Photo Channel has been updated to version 1.1, the channel will no longer be able to play MP3 format music files," writes Nintendo. However, this update will not have any bearing on in-game playback of MP3 music. "Wii games that currently have features which use MP3 music files will continue to use the MP3 file format. These Wii games will not be compatible with the AAC files," the company adds.