Which version of Perl should I use?

You should definitely use version 5. Version 4 is old, limited, and no longer maintained. Its last patch (4.036) was in 1992. The last production release was 5.003, and the current experimental release for those at the bleeding edge (as of 27/03/97) is 5.003_92, considered a beta for production release 5.004, which will probably be out by the time you read this. Further references to the Perl language in this document refer to the current production release unless otherwise specified.