Firstly, it looks like an SD2/IEC device (http://www.c64-wiki.com/index.php/SD2IEC) - Jim Brain makes a nice version of it that comes highly recommended (and a lot cheaper) at http://store.go4retro.com.
The cyan-green connector plugs into your cassette port, to power the device..
It defaults to device 10.
SD cards should NOT be formatted NTFS.
No idea if you need firmware for it - unlikely, but the wiki link above should help, as a starting point. Ask the vendor, if you can't get it going.
(there may well be later versions of the firmware than that loaded on your device).