Wow, you're reviving a 5 year old thread. Seems like .. (no I won't say it).
Anyhow, to add to your confusion: there is a further rendering mode, i.e. "EVR" (Enhanced Video Rendering) for Windows Vista and 7.
You wonder which
rendering method you should use?
Well, there is not one single answer to this question. Simply because we don't know (as you failed to tell us) anything about your PC, its OS and its graphic card and its drivers. These several rendering options are there because there are many different combinations of hard- and software and - of course - also personal preferences.
So the real answer simply is to use the one which gives
you the best picture and
options. Experiment with it and then select the one you prefer.