Apple Configurator insisting new iPads should update to iOS8

I am in a tricky situation and am somewhat frustrated.
My school have bought new iPad minis. I am currently running OSX 10.8.5. When I go to prepare them, it is insisting on them trying to update to iOS 8. The do not update option is greyed out unless I select unsupervised, which I don't want.
The problem is iOS 8 needs Apple Configurator 1.6. This in turn needs OSX 10.9 Mavericks. I have tried to update it but it warns me that 10.9 supports OSX Server 3 and unless I purchase an upgrade for Server 3 my server will be disabled.
I find this ridiculous for a number of reasons.
1. Why is it trying to update to iOS 8 when my version of Apple Configurator can't handle it?
2. Why do I not have the option to not update to iOS8?
3. Why to allow me to use the iPad minis that had I plugged in before iOS8 came out would work perfectly fine, do I have to buy an upgrade to retain the functionality on the server that I have now?
4. I should not have to make the choice between getting my iPads setup or losing my server functionality.
If anyone has any solutions to this I would be very grateful. At the moment I have 16 iPad minis sitting there not used because Apple Configurator is refusing to set them up.

I had the same problem. I finally found the solution:
"Hold down the Option button when you Click on the Devices menu in Configurator. You'll get the option for Edit Custom iOS Versions and then you can point it your *.ipsw file. "
https://discussions.apple.com/thread/6544047
I found the iOS 7.1.2 .ipsw files here:
http://osxdaily.com/2014/06/30/ios-7-1-2-update-download/

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