I am responsible for a team of developers who will are about to start development of a light weight insurance claims system. The system involves a lot of manual tasks and bu
I have done several WF4 projects so lets see if I can add any useful info to the other answers.
From the description of your business problem it sounds like WF4 is a good match, so no problems there.
Regarding your concerns you are right. Basically WF4 is a new product and is lacking some important features and has some rough edges. There is a learning curve, you do have to do some things differently. The main point is long running and serialization, which is something the average developer is not used to and requires some thought to get right as I hear far too often that people have problems serializing an entities framework data context.
Most of the time using workflow services hosted in IIS/WAS is the best route when doing these long running type of workflows. That makes solving the versioning problem not to hard either, just have the first message return the workflow version and make that a part of each subsequent message. Next put the WCF router in between that routes the message to the correct endpoint based on the version. The basic is never to change an existing workflow, always create a new one.
So what is my advise to you? Don't take a big gamble on a unknown, and for you unproven, piece of technology. Do a small, non critical, piece of the application using WF4. That way if it works you can expand on it but if it fails you can rip it out and replace it with more traditional .NET code. That way you get real experience with WF4 instead of having to base a decision on second hand information and you learn a new and powerful technology in the process. If possible take a course on WF4 as that will save you a lot of time in getting up to speed (shameless self plug here).
About the Simple State Machine. I have not used it but I was under the impression it was for short running, in memory, state machines. One of the main benefits of WF4 is the long running aspects.
Go with the technology your team knows and feels comfortable with. Workflow Foundation is not a product that you can use straight away - it's rather a set of pieces you can embed in your application in order to build a workflow system. IMHO the workflow logic is the least important piece of technology, first of all you have to concentrate on the GUI because business owners will not see anything but the GUI. But if your system is a success then you have to be prepared for neverending change requests and new requirements so you have to implement your business logic so that it's easy to change and easy to divide into separate processes to suit different user needs (sometimes contradicting). BPM helps in this task because it allows you to have separate, multiple versions of business processes suiting various business needs. You don't need full fledged BPM engine for that but it's useful to code your business logic so that it can be versioned and divided into individual business processes - the worst thing to have is an unmantainable and intertangled blob of code that handles 'everything' and that no one can understand. There are many ideas for that - state machines, DSLs (domain specific languages), scripts etc - you decide what the implementation should be. But you should always think in terms of business processes and organize your logic accordingly so that it reflects these processes. And be prepared for coexistence of many variants of business logic and data structures - this is the most difficult design task imho.