1. yes you can upgrade both editors, by replacing the existing files.
2. If you want to include more menu options you need to modify the config files
CKEditor - editors/ckeditor/ckeditor_init.js
TinyMCE - editors/tiny_mce/tiny_mce_init.js
Check the documentation for both editors on how to add/remove menu items.
Also you need to check each menu item what html tags it generates, and allow it in the host settings. For example if you want to allow htmls you need to add the table,tr,td tags added to the list of allowed html tags in the host settings.