You still take damage in VATS. You do seem to fire faster, a certainly more accurately than you do outside of it, but go up agains a pair or more of minigun wielding super mutant masters, and if you have low enough health to begin with, and/or have chained enough shots in VATS, you will die before you exit VATS mode. This is even more annoying if you have a massive AP pool, and your target steps behind a tree.
Min/maxing tips: start with 8 Int. At level 2 (when you first leave the vault) take the perk Intense Training, and add a point to Int. Before doing anything else, sneak your way down to River City, go into the lab, and grab the Int Bobblehead in the Science Lab. Do NOT talk to anyone in the lab while doing this (except the old guy, if you want) as it will cut out a couple of useful quests. Fast travel back to Megaton, or the Vault. At level 4 take the extra skill points perk, to get yourself 23 skill points per level from then on.
Easy mode is maxing Sneak, Small Guns, and Repair. Remember that each skill has a bobblehead, and that bobblehead is worth 10 skill points. Also, you can get 2 points of Luck and and a point of Per from wearing the Ranger armor, Luck Shades, and a hat. Don’t spend your perks on things that raise your skills (Little Leaguer, etc.), spend them on things that give you combat bonuses (Commando, Action Boy/Girl, etc.) or on Intense Training. After that, Lockpick or Science with a slight lean towards lockpick.
Stat order of importance: Int (skill points), Agi/Per (action points/enemy awareness), Luck/Str (adds to every skill, and effects how often you crit/how much you can carry) Cha/End (Perk access/Perk access and effects health).
Basic gameplay: sneak when you’re outside of a town, or known safe area. Use terrain against your targets. Use VATS at the beginning of every combat, and as then again as soon as your AP have refreshed enough to get a kill with what ever weapon you’re using. When you’ve cleared out an area, put all the loot in a container near the travel point so you can lug it to your house. Only sell things you don’t need (armor that doesn’t repair the ranger armor, pistols, etc.). Some items don’t have weight, these I don’t sell unless I need to buy something from this vendor right now.