I would recomend eather using V1.03B and the 3.0 realism mod or 1.01 and the 2.XX realism mod. In 1.03B submarines handle a little funny (they don't dive quickly at certen depth. So it up to you what you prefer. (you can do two installs that is disscussed in a recent thread by me).
The sound mods are optional, but most of them are are good. (I didn't really care for the BMG one).
The hotfix is included in V1.03B, I'm not sure about V1.01 but installing it before patchin souldn't cause problems.
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