Hi David
I would just like to point out that in guitar music, the capo now acts as the open position. Therefore we write as if there was no capo at all. This makes it easy for sight reading. As a professional guitarist I have only came across a few scores written in what I would say an incorrect way. Usually written by people more familiar with other instruments or guitarists that typically only use tab.
In the end do it the way you find best, after all I am not the one reading it.