Displaying In Game Messages?

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Let's say you want to throw up an alert box with a fancy background and some text on front of it. But you also want to display it with a fade in, movement, etc. How would you handle this?

1) You're somehow rendering everything off screen and just manipulating 1 object. If so...how?

2) You're manipulating the background image, text, etc, all in real time. Drawing the background, then the text, while at the same time moving, fading everthing in a group.

3) Other?

I'm probably going to use #2, but this seems like a nice case where a render to texture or similar feature (#1?) would be used.