To add to what Graham has said, #3 is definitely your best choice for the
very good reason that it not only eliminates the capitalization problem but
also allows you to format your paragraph with some Spacing Before/After so
that you don't have to press Enter twice to add space between stanzas. The
best solution of all is to create a Poetry style that has the Spacing
Before/After, as well as an appropriate left indent to visually center the
lines if they are short.
A bit more about the second part: Increasingly I see poetry centered on the
page--that is, each line centered. This is NOT a good idea in most cases and
makes the text more difficult to read. Instead, the entire block should be
left-aligned but visually centered based on the average line length. This
can be achieved with a left indent. There's no way to create a style that
will be correct for every poem (unless they're very uniform), but you can
start with a "pretty good" indent and then adjust the text manually for a
given poem by selecting the text and dragging the indent marker on the
ruler.
--
Suzanne S. Barnhill
Microsoft MVP (Word)
Words into Type
Fairhope, Alabama USA
http://word.mvps.org