SQL Server 2000 Migration To SQL Server 2005 Collation Change - Method?

Scenario
Recently moved a SQL2000 database to SQL2005.
Collation on SQL 2000 database server was SQL_Latin1_General_CP1_CI_AS
Colaltion on SQL 2005 database server is Latin1_General_CI_AS

After restoring the SQL 2000 database on SQL 2005 we observed that the database collation was SQL_Latin1_General_CP1_CI_AS. We have altered the database collation to Latin1_General_CI_AS. We understand this will work for all new objects created on the database but existing objects (prior to the collation change) will continue to have the 'SQL_Latin1_General_CP1_CI_AS' collation.

What is the best method to change the collation of the older columns to 'Latin1_General_CI_AS' -
1) Run ALTER TABLE ALTER COLUMN <colname> <datatype> COLLATE Latin1_General_CI_AS <nullability>
on each varchar/char column

or

2) For each table
BCP out data
DROP TABLE
RECREATE TABLE (taking the new collation Latin1_General_CI_AS)
BCP in data

3) Other methods?

Thanks in advance
David.