I think maybe it depends on such things as whether the verse is dominated by enjambment, and, if so, what kind of enjambment. For example, if a line is to begin with just one word that's been enjambed from the previous line, and then there's a period, it might not sit well with me if it is capitalized.
Also, if there are lots of stops (periods, semis, etc.) within the lines, it may be jarring to have "extra" capital letters among the interrupted clauses.
But on the whole, either way works for me.
[This message has been edited by Roger Slater (edited January 31, 2002).]
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