You almost definitely want to format SysNAND to unlink your NANDs.Nope. I never read anything like that (except "formatting is advised (not even compulsory) before downgrading" but no one cares since you're already on 9.2). Or maybe a CFW so old I never heard of it.
And actually, if you're already using an emuNAND with Gateway on a 9.2 sysNAND, all you have to do is add some files to your SD and you can boot to your emuNAND (same one as that used by Gateway) from your CFW. And without having any red cart insterted as I said.