7.4.2 is the latest stable version. I see no reason to use anything else.
From a longetvity perspective, 7.3.6 could be a good choice. It doesn't have all the wizbang features that 7.4.2 does but it is "good enough" for almost any application running PostgreSQL and has been battle tested for a very long time.
7.4 is still a relatively new beast, as the upgrade to 7.4.2 proves. It really depends on your cup of tea. We at Command Prompt, run and support both and have no problems either way.
Sincerely,
Joshua D. Drake
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