This is the first and oldest version of Rosetta Stone. As of 2011, every language they offer is at least in Version 2, if not upgraded to 3 with an upgrade available to acquire Version 4. You will not be able to buy this product or upgrade from it to a higher version.
Version 2 has units that each contain ten groups of four images each. These images are native speakers, except for languages that no longer have native speakers, that speak a word or phrase. Each unit has exercises, such as speaking, testing, listening, and reading. There is also a review at the end of each unit. You will not receive feedback on grammar in this version of Rosetta Stone. Note that the Version 2 application will not work with Version 3 discs.
Most languages only offer Version 3 or Version 4. The format changed between Version 2 and 3, with splitting each language into levels, each level containing four units. Within each unit, there are four main lessons, each with sub-lessons. There is a review that covers grammar, pronunciation, speaking and reading. There are usually 5 levels to each language.
Version 4 was released in September 2010, offering upgrades from Version 3 to 4 for most of the languages. (Check the website for which version is available in your desired language.) The largest benefit of this version is being able to talk to a native speaker in a live online session. Version 4 also offers the Mobile Companion on iPhone and iPod Touch. Due to the level of Rosetta Stone piracy, this version has increased detection of original versus burned discs.