I don't think the configuration tools work with 1.3, and the additional screenmodes definitely won't work. (HighGFX, SuperPlus, HD720, etc.). With 1.3 you're going to be pretty much stuck with just plugging it in and using it directly. It doesn't "require" any additional software, but obviously if you want to take advantage of some of the more advanced features, you're going to have to upgrade beyond 1.3.
And seriously, a 3.1 ROM is less than $20 bucks... :p