PDF/VT-1 differs from normal PDF in that it can contain information that is relevant for printing multiple records/recipients/documents in one file. For example:
* it knows when one record/recipient/booklet ends and the next begins. (this is necessary if you are going to do booklet finishing or stapling per recipient)
* it can define media information. For example the first recipient gets gloss paper and the second recipient gets matt paper.
* it can contain meta data including the ADOR values used in each document. This could be useful for document management systems or for some other custom post-processing process.
Which output format is best for you depends on your output devices (rips/printers) and the type of jobs you are processing. I recommend to do some testing with different output types and use which ever is best in your environment.