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ROM and Firmware update

ROM stands for Read Only Memory and in this case refers to the phone's internal memory, where the android OS is stored and so on. When you apply a new ROM you're just wiping the Read Only Memory of your phone and replacing it with a fresh copy that contains newer firmware. So don't think of the ROMs HTC release as being a feature of your phone you can update, they're just containers for new versions of firmware basically.

So like brykins says, the current ROMs available are simply going to give you a slightly tweaked version of Android 1.5. The 2.1 ROMs will replace the 1.5 firmware with 2.1.
 
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