1: I don't think there's any actual CFW for the system yet, just an exploit called HENkaku (I think? I actually haven't used it yet.)
2: No; firmware spoofing is iffy at best right now, so you'd likely get banned.
3: Yes; as far as I know, 3.60 is the highest exploitable firmware. (EDIT: Misread your current firmware version. I think you can safely update to 3.60 without losing anything. Maybe check with others before you do, though, I'm not exactly an expert.)