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Well if you start out in the Open division then nobody can call you a "Bagger".
Realistically however, I would say to go for an Am division simply because you already have some skills. Don't worry right away about where you place but instead just concentrate on your skills, your game and good course management. Don't get frustrated or angry if and when a bad shot happens. Just keep your head in the game and you will do great.
I would look at the competition. It looks like you have a pretty strong dg scene in your area. That being said, you probably will fit right in playing rec for starts. Look at how many people, and who is playing in each division.
I say, if you are in the lead group for the final round in more than one tourny playing rec (or any division) , its time to move up.
Go Open and try to get into the other players heads......
Just kidding. Play Rec, and forget about people and their notion that someone is bagging...