#!: Get the current software. Not only does it contain improvements and new features, but it will also contain support for modern cameras that may no longer exist in some older versions of the product. Software companies don't continually update old versions.
#2: RAW is a file format, not a religion. That said, I prefer to shoot in RAW most of the time because of the flexibility it provides in post production. JPEG is a compressed format that throws away information. RAW contains all of the information, which means you have a wider range to adjust exposure, white balance, etc.
However, RAW does not do any editing of the file, so you need to add that in post processing later. Your camera will add tweaks to color, contrast & sharpness when it creates a JPEG file. RAW doesn't (that's why they call it RAW). So you have to add those things in post to make them look appropriate.