- Does the Wii upconvert non-Wii games?
If you've got the component cables you can "upscale" old games to 480p / EDTV. Not that it's going to look any better, but the display doesn't change back 480i or anything.
- What does the Sync button do?
It allows you to sync wireless peripherals (Wiimote, etc.) to your system, like an Xbox 360. Nothing more or less.
- Is the blue light always on during gameplay?
Nope, only when loading games into the drive.