I've used both methods and even with only two developers...I much prefer VSS. VSS is great for backing out code that inadverently caused problems.
If you do use the manual method....be wary of any files that you both may be inadvertently working on simultaneously... I'd suggest laying out a few groundrules for who's working on what files.
HTH
I try to stay online, to get better information.
I try to get away from the office once in a while..
But they KEEP... PULLING.. ME.. BACK.. IN!!!