First off, congrats on making the comittment to a fit life! As for the model differences, there really isn't any. The difference is in the DVD and/or accessories that come with each model. Take a look at the different DVDs on the products page to get a better idea of which one will suit your needs (and you can always order more individually to change it up). Depending on what your exercise room setup is, I would recommend picking a model that includes the door anchor or purchase the door anchor seperately. I prefer using an overhead anchor whenever possible, but the door anchor really does allow for "fitness anywhere" so I'd go ahead and get it just in case (great for travel too).
In response to the cardio question, the answer is "YES." You will absolutely be able to reap cardio benefits from the TRX, and can easily eliminate/replace any exercises that cause joint discomfort. Most, if not all, exercises IMO could be considered "low-impact" or joint friendly. There are several threads on the forum that discuss the different ways to increase the metabolic effect, etc. Browse through the forum and I think you'll get a better idea of how this can meet your specific goals.
I've really enjoyed the TRX; it is an excellent workout that will increase your flexibility, strength, range of motion, and cardiovascular and muscular endurance. Oh, and it IS fun. :-) Good luck.
"Teaching is only demonstrating that it is possible. Learning is making it possible for yourself." - Paulo Coelho