Question about CVS - Tags or branches

Hi,
I was hoping I could get some advice from people who have been using branches in tags in projects for a while.

I have been reading some great articles on CVS and understand the basic and have been able to put these into practice in Eclipse no problem.

My question is what do most people do when you release a new version?

I was thinking to tag it (e.g. 1.0)...then when a bug for the release comes in, check out your tagged version (1.0), branch it (1.0.1), fix the bugs and check it back in.

As an alternative I was thinking that you could branch when releasing (e.g. 1.0) and when a bug fix comes in for the release (1.0) check it out and commit the changes.

So should we tag a release then branch when bugs are found for that release or should we branch upon a release?