I'm going to play with 1.03 for a day or two and then go directly to 2beta3.
I recommend you stick with 1.03 for a while, since it's your first time with the player. 2b3 has some great features, but there are a few bugs being reported that might spoil your enjoyment. 1.03 might not have as many features, but it's rock-stable and won't give you any surprises.
Definitely do all your music uploads and playlist mangling with 1.03. When you're settled in with it and you think you're ready for a walk on the wild side, then go for one of the 2.0 betas. By that time, there might be a newer beta out with fewer bugs anyway.
Especially since you were complaining about the playback hiccup in the Neo unit... one of the 2.0 bugs is a playback hiccup.