The hand issue sounds like it's due to you moving the hand past the limit switch on the X axis, make sure that it's not already closing the switch when you boot. Could also be something wrong with the optos, take a look at the limit switches and optos in switch test mode.

You can also see that hand behavior if one of the two x axis optos are out or the interrupter is broken. The hand won't start moving in its own just because the ball in hand switch is closed. Turn the rod by hand in switch test and make sure both optos trigger independently.

If you don't have the latest ROMs you do need to worry about it- not a ton, but you could still fry things in the glove without it. With a new machine you can't assume the owner or operator updated them.

Look at the ROMs in the backbox. They should pretty clearly say 1.1 or 1.2 or whatever.

Have you ever gotten touch-tone multiball? If so, you're running the old ROMs.

Odd- I could've sworn it was removed from the mystery awards in 1.2. Maybe it's just a really reduced chance.