Recommended Practice?

Hi All,
I've finished development on a 1.0 version of a project (component).

I want to freeze 1.0 development, and start development on 2.0.

What is the recommended practice for doing this with vault?  I want to keep all of my 1.0 files "etched in stone", and only to be used when I need to do builds, bug fixes, tests, on this 1.0 version. I want do keep this 1.0 copy around, so that when I'm on version v.NEXT (ie v2, v3, v4, etc..), I can always go back, and see how certain functionality worked in 1.0.

What is the recommended practice for achieving this with vault? 

Should I just create a new repository and call it "Project2.0" (or something like that), and copy all of the files into the 2.0 project?  Do I branch?  Any whitepapers I can read on this?

Thanks,
Dave