I suppose, there are many models in sony fontopia, you select a specific model and ask for the price, you can head to sony india website and see the MRP, though lot of models are not available there.
you can buy a Creative EP 630, its a good earphone, its available in chennai for Rs. 975.
firmware version 3.4 is the latest version, its available for download here
http://www.transcendusa.com/Support/DLCenter/index.asp
there is no risk involved in updating the firmware, but you will loose the data stored, backup before upgrading firmware.
you could have found answers for your questions just by googling. I suggest you, before asking anything here, just do a google search.