A game question bout PS3 ?

It is like this. I just bought a ps3 from a store but didnt know it was a hack as the 14 games are in the internal hdd and it give me 15 games in it with one cd called 'Red Faction Guerrilla" I ask if i can play online as one of the game is Red Dead Redemption (Badly Wanna play online) So when i went online... the ps3 said to upgrade so im wondering if i should upgrade it and if i did what the meaning Banned ? will i get banned on psn but still can play the game on the harddisk or what ?