Lack of source control is not the worst option at all, there is no need to discuss it, and in fact it is not an option.
I used VSS once (10 years ago), and besides the fact that it had very bad third-party tools, I just mentioned that the repository was damaged several times (sigh). This certainly explains why I don’t trust VSS at all and prefer to use alternative open source tools (it couldn’t be worse).
If I can avoid CVS , I do this. This works, is widely supported, but actually lacks important functions (the most important of which is atomic fixation). But it works (it's better than nothing or VSS).
I used Borland Starteam in a big project. Non-technical people can appreciate its client interface, but for developers it did not have too many important things: no nice IDE integration (even in JBuilder, what is the irony), no hooks after commit, no effective Java API (for use with Maven, for example) , damn slow on WAN, etc., as well as some other very annoying glitches (for example, a user interface that does not display directories that are not displayed). Not terrible, but there are better solutions.
ClearCase is a bad experience, perfect for anti-agile development (driving me crazy). And so it was PVCS (nightmare). I don’t even know what to say / where to start: expensive, heavy, bad tools, etc. People who buy these tools cannot use them, it is impossible.
Subversion was supposed to succeed CVS, the wider CVS (by providing missing features) is widely used, supported by many tools and is still highly recommended. Better than any of the previous solutions.
Then we have DVCS, such as Mercurial , Git , which are more powerful, but require more skills to be used, and still lack support / integration tools (using the command line is not suitable for everyone). However, they are recommended depending on the context (not everyone needs more power), and Mercurial will have my preference because I find it more friendly.
This is clearly visible in this picture from the Martin Fowler VersionControlTools page:

He must have read my mind when he wrote this page :)