Hi,
It depends on what it is that you want the diagram to tell you. Collaboration and Sequence Diagrams are showing the same information but in two different ways. Collaboration diagrams are good for understanding how the objects interactive with each other, hence Collaboration diagram. Sequence diagrams are good for understanding the flow of operations, hence Sequence diagram.
With most UML tools (Rational at least) you can generate Collaboration diagrams based on Sequence diagrams. I use this feature sometimes to get a better understanding of the connection between the diagrams.
Remember that
you should only do diagrams if you think they will help! No point in doing stuff you don't need (except if your clients requires it!)
Kind regards,
Allan