Alexandre,
Joomla really recommends upgrading to 1.6.5 before going to 1.7 because the last 1.6.x release fixed a bug which could cause big problems when upgrading. It only affected a few sites, but you don't want to be one of them. Unfortunately, I can't find the upgrader from 1.6.3 to 1.6.5. You may want to try the 1.6.0->1.6.5 one though, since it should encompass all changes:
joomlacode.org/gf/project/joomla/frs/?ac...iew&release_id=15178
Either way, backup first, as always, before upgrading.
As for JFBConnect on 1.7, we've tested the last release (3.3.1) and just about everything was fine, and nothing should prevent you from upgrading. The upcoming 4.0 release has a lot more 1.7 testing, but I wouldn't say you need to wait on that. In general, we're planning to continue having 2 separate releases for a while: 1 for Joomla 1.5 and another for Joomla 1.6+ (1.7, 1.8, etc).
Hope that answers your questions, and if you decide to take the 1.7 plunge, please let us know if you run into any issues.
Thanks,
Alex