eh eh hanief from malaysianews? lol great job on those vids

1. yes its known as rooting. u can root it as when u want with different mod roms that are available outside such as cyanogen or modaco. these roms are quite updated and most of them are already running on Android  1.6. but u gotta read and understand the risk of rooting first before doing it.

2. update from telco? i believe the first Magic was  locked from Celcom but thereafter there isnt if i'm not wrong. i bought my tattoo that runs on donut without any sim lock...

3. yes rooting also does the sim unlock + u'll be getting the android market app out...