I always buy plain edge baldes. Much easier to sharpen, and cut better, unless you have some specific need for a serrated blade, such as cutting rope.
As for the steel, 154CM is a good steel in my experience. It will take a good edge, and hold it well, and is also pretty stain resistant with the right finish(ie not bead blast). At around $50 for the 154 the knife is a great bargin(I don't own one yet, but most other knives in this price range use a lower quality steel).
Erik