Going with your "first instinct" is a very popular myth.
Research shows that students who go back and change their answers are significantly more likely to raise their scores. I believe this is pretty well documented:
http://www.jstor.org/pss/30182052
Even I have a hard time believing it but it makes sense if you think about it.
As for guessing, I suppose what the OP posted is about as far as you can go if you really know nothing about the question. However, like the guy above said, you can often find many hints in the question if you look carefully at your options.