
I don't really disagree with you, but you mention dropping the PHB in their hands (limited options) and the CB in the same post. The CB gives a bazillion options and would probably distract my players to a big degree.I think the key is not so much removing material as in saying "you can only use this and this" as just saying "here's some stuff you can use, if you REALLY want to go muck up other options for youself, go to town." If the players are all new to the system and you drop a PHB1 in front of them, chances are real high they'll create a character based on that book. Later on they may well branch out, and they may even want to change a few choices they made at the start, but at least they (and you) aren't hit with a wall of stuff to think about.
Beyond that, 4e is really good about the DM not really needing to know all the player's stuff. Yes, there are a few somewhat OP possibilities, but they aren't ridiculous, usually require the DM to give you specific items, and can always be discussed later since very few of them pop up at level 1. You certainly don't need to know every power the players might pick up, or every feat. It isn't a bad idea to take a look at the player's sheets to make sure things are done correctly (for instance pretty close to every player that has ever joined my game has had their ability scores all out of whack when they showed up, lol). Beyond that you can just assume things are OK unless something comes up that seems wrong. Ideally the players run their sheets through CB, but that might not always happen.
If you're feeling terribly insecure and want some of that familiar Basic D&D/AD&D feel, check out D&D Essentials, starting with the Red Box (the cover art should ring a bell for you).I am undecided between reverting back to AD&D, which still feels the most familiar to me, or a retroclone, or to move on ahead with the newest incarnation that is 4e. Should I just embrace 4e?
YES. So easy that if you're accustomed to running AD&D, you could trip yourself up.Does anyone have any tips or advice for DMing a 4e adventure for the first time? For instance, is it easier to DM with 4e?
 Building encounters is /easy/.  The monsters have levels, that actually mean something.  The rules are consistent.  Treasure is easily parceled out.  Magic items also have levels, that actually mean something - stick to level-apropriate items and vanishingly few of them have any potential to break your game.  Really, if you can run AD&D, you can run 4e in your sleep.  It might be a little difficult if your conscious and actually stop to think about - preconcieved notions about how quirky D&D is will probably be your biggest stumbling block.
   Building encounters is /easy/.  The monsters have levels, that actually mean something.  The rules are consistent.  Treasure is easily parceled out.  Magic items also have levels, that actually mean something - stick to level-apropriate items and vanishingly few of them have any potential to break your game.  Really, if you can run AD&D, you can run 4e in your sleep.  It might be a little difficult if your conscious and actually stop to think about - preconcieved notions about how quirky D&D is will probably be your biggest stumbling block. 
