Kartik,
3. Or Should I install SFORA-HA 5.0, follow with MP1 and roll-up
patches installation and then configure everything.
I'd choose this option. In fact, before doing any configuration, I usually take a flash archive of one of the initial nodes and use that to quickly roll out the whole distro. Rather than waste cycles on first an OS build, then the software install then upgrade to MP1 and then patching, I take a flash archive of the "complete" image (full with OS, patches, SF + MP).
After it's done, I simply configure VxVM (it's a 4 step process --
# vxdctl init
# vxdctl enable
# rm /etc/vx/reconfig.d/state.d/install-db
If you want to encapsulate, do so using vxdiskadm or from the cmd line --
http://www.realsysadmin.com/2005/11/vxvm-tricks.html
hth