I have a fair knowledge about Javascript, I started with jQuery 1.4 a week back and I have gone through some examples. It's very interesting to use it with my application. But my concern is, should I care about previous versions? Should I know what the downsides are of the previous version?
Always use the very latest version.
Learning about fixed bugs is interesting in the old versions, though your time is probably better spent learning and trying out the current version's features.
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