I currently have SpyBot Search & Destroy version 1.2 and there is a newer version 1.6.
When I open the program and click update its telling me that no newer versions are found. Do I need to uninstall the older version and totally reinstall the newer 1.6 version?
Are you sure about that version? 1.2 is really really old--an antique. I was under the impression it was unable to get updated definitions for that version a while ago tho I could be wrong. I also was under the impression, if memory serves, that Spybot does not have a way to update the program between major versions, tho I could be wrong about that too. In other words, to switch from, say 1.3 to 1.4, you would have to download the setup files manually from the website and it's better to uninstall the old version before upgrading.
But yes, I, and several others have given up on the Spybot/Ad-Aware combination. Spybot never was easy to use and probably never will be. Plus it has added a protection module called TeaTimer that is OK in theory but most people don't understand how to use it and it can cause more problems than it's worth. If you have a good antivirus that runs in the background to protect you when you try to open files, then having an anti-spyware/malware that does the same thing is usually not needed, IMO.
That is the beauty of SuperAntiSpyware (SAS). Very simple to understand and use and very light on resources in the free version.
SUPERAntiSpywareFree version and SpywareBlaster. They both do the same? Is it like having Spybot and AdAware
No, SpywareBlaster isn't, it's a passive prevention technique rather than a program that scans and removes. It doesn't run in the background, but rather sets up your registry so that certain things can't be written to it.
To learn more about SpywareBlaster, see BC's tutorial How to use SpywareBlaster to protect your computer from Spyware, Hijackers, and Malware.