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Couple of quick answers.
Yes, the firmware has to be 5.8.7.0.1 or lower in order to jailbreak.
Second, you cannot get rid of the special offers with the jailbreak.
Third if you have special offers, you cannot use the screensaver hacks.
Yes, you can have them removed by Amazon later but it is easier to do it before jailbreaking.
Personally if you just want to jailbreak for other formats, my suggestion would be convert with Calibre instead.
*Make sure if you decide to jailbreak that you read ALL (including the spoilers) the instructions and understand them before starting.
*Do not attempt to remove the special offers yourself unless you want a $100+ paperweight.
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