both are Ok for you.

I researched the instructions for both options. The first year(2007) I used hope credit for my wife's graduate education, to claim $1650 credit on married-joint filing tax report. I did not use life-time, as 20% would only yield $1200 (we only paid $6000 that year).

This year 2008 I use life-time for tax filing, since it would give the maximum $2000 (20% of maximum 2000), while hope credit still yields same: $1650.
Last year my tax filing was audited. After several months waiting, they said my claim was as it should be.
Hope this helps.