Hi Domnic,
1. If i connect to SAP from my TEST SERVER containing same SID same Installation number as of DEV can this be a conflict?
As you said you're working on a Test Server with same SID,then as per me you've already registered the system on SAP Marketplace as a test system with different host name.If not then you can register the system as a test system or sandbox type to perform your upgrades.
After registration of the system you can configure SAP-OSS connection on it to download the required corrections.So for me there would not be any conflicts.
2.If there is any way to download this note in my DEV server kindly advice me.
Other method is already suggestedabove by Gaurav, you can simply follow the steps to upload the note if system is not registered at SMP and SAP-OSS is not configured .
Hope this will help you.
Regards,