yeah I'm in the disc group, and did not get the update, I went back and checked and the console ID on the back of my 360 did not match the one that was under system INFO so I had to resubmit, said I will get the update within 48 hours
No it will not work, they can only take one system on the trade, but you can trade the other system and get 85 for it after the 25 buck bonus so you would be looking at 250 instead of 265