I've been using CAP3 for assembly. I've considered trying alternate assemblers (MIRA, especially), but I've not yet had the time to do so. However, regardless of the assembler being used, I figured that "to mask or not to mask" will still be a valid question and that I might as well make up my mind about it right now.
The 454 reads aren't particularly long. After cleaning and removal of short reads, they average ~270bp.
I am very much interested in the answer for this question.