Actually, the way I have it, knowledge about everything up to Generation 5 is well-known. It just seems really odd to have characters not know what some species of Pokemon are. I do have one character who was raised on stories of all the legendaries (especially Ho-Oh) and prays to Uxie, even though the character is from Hoenn. It just makes more sense than characters from Kanto only knowing Kanto Pokemon or some such.
And yes, AU. :D
Cheers for the review!