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Why would I deploy one of these over the other? It shouldn't matter to us if the SSP is SS1 or SS2 right?

Also, I couldn't set the SS2 to work anyway but deploying the SS1 SSP worked.

You need to deploy both, the SS1 at website/domain record level, and the SS2 through the SS2 SSP application page, you should see two buttons: "deploy to site" and "deploy to domain"

the reason is that there are some services that uses SS2 and they will rely on that SSP, that's why you need to set both of them up correctly

I deployed the SS1 SSP from the SSP record (link to domain).

the SS2 SSP has an option 'deploy to domain' on the SSP record.

I've now done both - thanks for your help!