Problem 1: is no such thing, SAVEDATA is where your save games are stored, better not mess with that one or you'll lose all your in-game progress.
GAME150 is for homebrew games, emulators programs etc, I guess you've never used one of those.
yeah is normal
Problem 2: there is no need to downgrade to 1.50 and you can't go straight to 401 the order goes like this
3.03 OE-C then 3.51M33 then 3.51M33-4 then 4.01M33 then 4.01M33-2
just follow the readme files of the updates
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