Quote - I am interested in getting a new character here and wondered who you think makes the best (most realisitic and sexy) female character that will work in Daz?

I like the V 4.2 based or Genesis 2 characters. By the way where are the Genesis 2 characters here. 

V4.2 is an older base character and has some obvious bending flaws. As 3doutlaw said, you need something like "Perfect V4 Complete" to fix those. Both Genesis 1 and 2 are much better at bending. There is a "Beautiful Bends for Genesis 2 Female" product in the DAZ store, but I do not have it. Perhaps this makes the bends even better in some way, but I don't see obvious bending problems with G2F the way I do with V4.2.

Genesis 2 is the new base character for DAZ, and most of the top PAs that sell in the DAZ store are concentrating on G2F characters now. A number of PAs here are starting to offer G2F characters. Go to Dept. -> Characters -> Genesis 2/V6. There are about 20 characters there. 

In the forums at DAZ several PAs have said they are concentrating on G2F/M products, because they just sell much better at DAZ than V4 or Genesis 1 products. Here and at other 3rd party stores I suspsect they still sell more V4 products, but I have been surprised at the number of PAs here that are turning out G2F/M products for sale here.

If you want to get characters that come with good skins setup to use the AoA subsurface shader in DAZ, that pretty much means G2F/M characters.  I don't know of any V4 characters that have been released with AoA SSS skins, even in the DAZ store. At this point, I suspect most PAs developing V4 products are concentrating on the Poser market. They will come with Poser SSS skin material that does not work well in DAZ (certainly doesn't give you any SSS). If you can learn how to create your own AoA SSS material for characters that only come with Poser materials, then sticking with V4 gives you access to a lot more characters now.

I use to use both V4 and Genesis 1 characters, but I am in the process of switching over to G2F/M for almost everything. I'm egarely awaiting the release of Gen X2, so I can transform body shapes from V4 to G2F. I already have transformed a number of V4 skins to G2F and AoA SSS shader.

Ther new HD moroph technology from DAZ also is mostly available for G2F/M. HD morphs apparently can work on Genesis 1 too, but not on V4/M4. For young men/women, the HD morph technology is not a big thing, unless you are making very large closeup renders.

If you are using DAZ Studio, it seems that G2F/M are where the latest and best technology are available, but there is no question there still are way more products available for V4.