Yup. And you should use 1.6a, fixes a small problem we made at Nar Shaddaa.
Yes. Actually, it's pretty much recommended to update to 1.0b first. We fixed the Telos cheat node issue, so that wont be a problem...
Although I have to say, seeing how they are engine related we can't fix most of the random crash issues, mostly revolving around Onderon...