If you have one of the ARDS with the 1.54 preinstalled, there is absolutely no way to upgrade to 1.7X. Though, I sent a support ticket and got the following response (the download link is attached to the post via the Attached link field):
v1.60 and v1.71 firmware are NOT compatible with...
Getting an Aqua Blue for the sake of keeping my blue(ish) GB/GBA/DS streak going.
As for games, SSFIV. Never got it on any other platform, but I have the original SF4 for PC. Might as well get it for this and play with a few friends.
I'm not sure if this will work between DS and 3DS, but when I bought my Lite I was able to transfer my Wifi settings from the phat (connection settings, game-system links, etc).
The first time I connected to WFC on the Lite it went along as if I had still been using the original DS, friend codes...
Ruby, Sapphire, Emerald = Hoenn
FireRed, LeafGreen = Kanto
Diamond, Pearl, Platinum = Sinnoh
HeartGold, SoulSilver = Johto. Not sure if they count Pokemon in the Kanto section of the game as from Kanto, though.