Editing HDV in FCP - 16x9 or 4x3 - need a solution

Wow... I love this forum! There is so much info! Maybe someone can help me here...

I will be shooting a project on my FX1 in HDV. Essentially it is for kids and will contain people singing songs - basically a sing-a-long. There will be the words from the song at the bottom of the frame with a bouncing ball. The project will end up on dvd. Here is my dilemna in a nut shell...

Shoot 16x9 HDV
Edit in HDV
Export with 4x3 framing
Adjust image up so most of letterboxing is at the bottom
Add text to lower portion of frame (over black bar)

OR

Do all of the above but down convert and edit in Standard Definition right off the bat?


Eeegads! Options. I know there is probably one right way to do it and many work arounds, but can someone suggest the best and simplist way? Essentially I want to present as much of an image as possible. Kids are kids and as much as I love widescreen, they don't care. Bigger the image the better.

Here is a sample image...
http://www.unitednathanproductions.com/blog/images/sample.jpg

Thanks!

United_Nathan
http://www.unitednathanproductions.com

[Tom Meegan] "Edit your clip into an anamorphic DV sequence. Use the Easy Set-Ups to set it up.

Drag this sequence into the Viewer.

Editing this sequence into a DV sequence that is NOT anamorphic. Make a new sequence, double click it and then hit Command-Zero to change turn off the anamorphic flag."
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Thanks Tom. Let me see if I understand you 100%. Downconvert to sd as I capture. Edit in an anamorphic sequence. Bring this edited sequence into a non-anamorphic sequence. Apply text and graphics to this new sequence. Sound about right? Sounds very feasible to me. Thanks.

United_Nathan
web... http://www.unitednathanproductions.com
blog... http://www.unitednathanproductions.com/blog/