1. would I get banned or flagged for banning if i use an unoffical wireless adapter?
No, you would not get banned for that. However, being connected to Live while having a flashed 360, there is always a chance that you may be banned. People say that as long as you make sure your games are stealthed and you don't play early copies you'll be fine, but there is ALWAYS a chance to get banned with flashed firmware.
2. I heard ixtreme 1.6 is coming out soon? Is it going to be out for all drives, or only the lite-on?
I'm pretty sure i.5 already works on all drives. There is no telling when 1.6 will be out.