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The choice between Hydro / 12.04 and Indigo / 14.04 is yours. If both distros have all the ROS packages you need for your project you basically trade better tested with longer support.
I would not recommend Groovy at this point. As soon as Indigo is released (which will likely be within a week) Groovy will be end-of-life and therefore not receive any kind of updates / fixes anymore.