It would conflict with the updates yes. I have yet to do mine yet so Ill leave the rest to the experts.
Updates are completely unnecessary. Nintendo doesn't have as many checks as Sony or Microsoft to see that you are running the latest firmware for when you go online. I've got 4.0U on mine and I've left it that way since I got it. Most features of the Wii system updates can be installed via CIOSes in the form of .wad files. So in short, my 4.0U Wii can do everything that a 4.3U Wii can do because of the many CIOSes I've installed. Once you hack the Wii, you will need to avoid updating it through the Wii system, and through disc updates. When you burn games to a disc, you will need to Brickblock it, which rips out the update section of the disc. I would suggest doing this on every disc you burn that has an update. Since you just got yours, any 2011 game should be brickblocked. I would also suggest running BootMii, which can run when it boots up. I can't remember EXACTLY what it does, but I use it for the setting that prevents the Wii from updating. Nice little feature. A lot has changed since I last hacked mine. My method was the Bannerbomb exploit, but I've heard they patched that security hole up. You'll have to find the latest guide on hacking the Wii. We have one in the Tutorial section.
