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Personally, I would go with News 1.1. I recently moved over to News 1.42 and I'm starting to regret it.
News 1.42 has some nice features, I dig the meta input and the Page titles, but I'm still debating if it's all worth it.
If you want to customize the Recent news template, you'll want to view this to fix the bug in that block:
https://xoops.org/modules/newbb/viewtopic.php?topic_id=43135&forum=28&post_id=189027#forumpost189027
I've yet to find a way to "Move this story on top" without changing the date and time of the article.
https://xoops.org/modules/newbb/viewtopic.php?topic_id=43407&forum=7&post_id=190287#forumpost190287
If you or your users submit news via w.bloggar,
be aware there is a topicid bug in 1.42
https://xoops.org/modules/newbb/viewtopic.php?topic_id=43157&forum=27&post_id=189179#forumpost189179
Again, News 1.42 rocks in other areas but can be a tad frustrating and time consuming in others. My experience with it anyway...
Dispelling the Mystical belief of Web Standards and tableless CSS.
Nobody gets excited about the tools used to build a house, people get excited about how the house looks and performs