Bag it. As long as you do the setup right and don't skimp out on parts, there should be no problems. Remember to put water traps between the tank and the valves, and that will cut down greatly on air leak problems in the valves. Check Gambino Kustoms for a c-notch setup for the pre-55 Chevy's that allow you to notch and keep your interior easily. Always run dual compressors and at least a single 5 gallon tank. Slam Specialties puts together some awesome affordable setups.
Here's my last bagged ride, didn't need a notch since the frame has a natural kick up in the rear that allows the car to lay frame: