Pounder works fine in soft or particularly wet soil, and even then it helps to have a somewhat pointed tip. If you've hard soil and/or rocks, a pounder can be frustrating (split posts, crooked posts, etc). An auger works on any kind of dirt, wet or dry, but larger rocks are an issue. For a 4X4 that you're not planning to put cement around, a 6" auger is fine. For cemented in corner posts, use a 9" auger. You can always get a 4X4 straight in an augered hole, as there's so much "play" around the sides of the hole to work with. As to lining up the auger - it's mounted to your tractor and swings downward in a bit of an arc, not much but enough to put the hole slightly off center. Just drop the auger tip where you want it, and drive your tractor backward an inch or 2 (depending on the arc of travel of the auger head). Should work fine.
As to a 2 man hand held auger - HOW many posts was that you needed to seat, and how strong is your back?