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Nope - when you flash a custom rom in recovery you are replacing the complete system, so you'll have whatever version of android that is used in the rom. They will typically all be later versions - anything from 2.3.4 to 2.3.6/7. Make sure you read the instructions for the rom you select carefully in case it needs an ext partition, and sometimes a different hboot which you need to be S-OFF to change.
If you are not s-off suggest you avoid until your comfortable with whole flashing process.
Before you do anything, do a complete nandroid back up in recovery.
Correct.