Emulator

I can confirm this.
Windows 64, Dolphin SVN R 6567

well it's solved, here's the solution: http://forums.dolphin-emulator.com/showthread.php?tid=13642&page=2

I think only the PAL version works...or someone there has some special settings he won't share g

I have tried both the NTSC and PAL versions of this game and can confirm that thae ticket file from that thread does get past the grey screen. However, it is not really a solution. The game still throws an error:
IOCTL_ES_LAUNCH: Game tried to reload ios or a title that is not available in your nand dump TitleID 0000000100000011. This error does go away if you tell panic handler warnings to go away.

The real issue is that for some reason the game refuses to use real wiimote for controls. The real wiimote works on the normal first screen about the wrist strap warning, and then no longer functions past the controller screen where the grey screen usually stops you.

You have to download a ticket, that is not a solution to the problem.

The gray-screen after controller warning issue still persists in Mortal Kombat Armageddon (as of Dolphin 3.5-1348) exactly as described above.