Hi Matthew,
I've had my Emerald self mapping for a couple of months now. Essentially you define an AFR target for all the load/speed sites that you are interested in and then as long as the engine is running within certain (user set) parameters it will try to determine the correct fuelling for the given AFR. When you start the self mapping you may find that the initial corrections that are generated might be adding or subtractings several 10s of % to the map, whereas after a few updates to the fuel map it should then settle down to only a few % or less up or down as the map optimises.
You definitely need a wideband lambda sensor (lots of people go down the LC-1 route), the standard narrow band probe is essentially just a switch and is not sensitive enough to do the mapping.
Emissions is about more than just AFR - if your ignition system is flakey you may still end up with high readings, but I would have thought if everything else is in good condition that it should certainly help.
As far as which versions can be upgraded, I think you have to have a serial number above 41272 and send it back to Emerald for the update.
Hope that helps, Mike