Ok Computer is an excellent, excellent album. Probably one of the best of the last 20 years, if you ask me.
As for which group is more innovative, there really is no competition. Radiohead continuosly explore new methods and technologies of music. They do everything but make up instruments, and I believe I've even heard of them doing that.
Still....Radiohead never really re-defined any type of music. Even Amnesiac and Hail to the Theif are filled with songs with very much a natural progression from rock and roll/techno/psychadelia.
The amazing thing about The Beatles, is how much they just plain invented. Consider that their influences were Elvis, Chuck Berry and Little Richard, and then try and figure out how they got to releasing Sgt. Pepper. One producer The Beatles tried to sell themselves on immediatly before they hit it big told them "guitar bands are heading out". The Beatles took a dormant monster, released it, and then gave it superpowers.
Like someone said earlier, The Beatles worked with 4 tracks most of the time, as opposed to the endless number Radiohead and every band today work with - as an example, my band when we were looking into recording were looking at having 32 tracks to play around with. The Beatles invented artificial double tracking. They were the first band to use reverse tapes on loop with gorward tapes. They were the first rock band to bring in a sitar, a mellotron or a synthesizer for that matter. Before The Beatles (and in their early days) - nearly EVERY song in rock had to be about 3 minutes. They, obviously, squished this where it pleased them to. They were the first band to play a modern outdoor-stadium concert.
The Beatles were also possibly the most productive band in history. Where a group like Radiohead has released roughly 6 albums in the last 11 years (about an average rate for bands these days), The Beatles released 13 or so (15 if you count White Album as two and combine the Yellow Submarine album and Meet The Beatles) in less than 8 years as a band. They wrote 213 songs in that time, an average of about 26 songs a year. We're lucky nowadays if a band puts 15 songs on an album, and more than one album every two years! If there is one thing I have to pick out that makes me respect The Beatles more than anyone else - it's that they quite touring. Around Rubber Soul (their 6th album), the fab four decided they could produce better music if they didn't go around on tours. Why do I respect this? For one, they're the single only major act I can think of that decided to do that for the entirety of their remaining careers. No other band has ever decided that they'll just focus on music. Touring, while I'm sure quite fun, takes away from time to write, record and produce music. I'm not sure I can think of another band that's been willing to give up that much money.
Anyway, I must go. The debate goes on.