I have the 4.2E update and still have the HB Channle working. I managed to do my friends as well, which is a later model than mine. If you update, then you will usually have to re-install the HB channel etc.
I got NSMBWii and it is good fun. My Mario skills suck somewhat though and have hit reouble on the deset level (thats world two folks) Yep, I suck that bad. BUt it is fun and even managed to get the missus playing it. Its cool multiplayer as I could pick her character up and carry her through any tricky platformy areas. Very cool.
The bit that I kept getting smashed was the level when you are chasing the stay puft through the streets. It got so annoying that it ruined the fun, so I went to an easier mode. No good playig games if they aint fun.
I believe the syncing isssue only affects slims so if you have an original one, you should be ok. Sony know about it coz I rang their "help line" and had a big whinge about it
Whee, Just finished upgrading my PS3 to a lovely 500 gb harddrive! Huzzah!