upgrading is fine as long as the games are from the same region zone.
ie. your in australia you use pal etc.
upgrading over the internet will solve stop games asking you to upgrade via the disk, please note though you wont be able to downgrade/use homebrew in Version 4.00 (the latest nintendo firmware).
If you want the games to stop asking you to update, install a homebrew application called starfall on your console and choose it to "skip disc updates"


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