I always use the newest. Its not like you can't revert back if they have issues.
Yeah, your GPU just can't handle what is expected of it when you are looking at those kind of sources, there isn't much you can do about that. You don't really have the hardware to play Skyrim.
There are mods out there that actually lower the textures of Skyrim in half. If you are used to modding TES games like Morrowind and Oblivion then it should be no problem to download it and replace the torch textures with something lower, that might help you out.