I would also say to go with a fiber optic. I prefer green. Red seems to play with these old eyes and sometimes appears like an infinity symbol (sideways 8).
As for the front sight hood though I would say no. I have several rifles with peeps. Mostly levers like the Win 94 and Marlin 1895. I've found that without the hood it is easier to center the bead in the peep. At least for me that is the case.