I've used grade 2 paper as negatives exclusively for the last few years; that, combined with a bit of preflashing and a controlled development have permitted negatives of acceptable contrast to be contact printed with good results.
I've heard, but not tried, that using low-contrast filters on VC paper will help lower the contrast, but you lose lots of speed, making the paper negative effectively much slower than just using graded paper in the first place.
I also use RC paper for negatives, as I don't get any noticable paper texture on the resulting contact prints, due to the paper's plastic coating.
For prints, VC fiber paper is a good choice, offering a great surface finish and control of contrast.
~Joe