My 3c 
[INDENT]If you are working with IS-only components, I suggest that you use element/service/component level granularity.
[/INDENT]
I had done that extensively in the past (using PVCS) with great success.
The reason I prefer component level granularity is because its better option of the two.
- More Detailed
- Greater Flexibility
- Better control over the process
At package level, you loose control over modifications (which is what you want to achieve in first place with source control). You dont want your developers sneaking other changes in the same package into production with unrelated service request/modification request.
But if you are looking for a simplified solution, ease-of-use and (more of) code repository, package level granularity is the right solution for you.
Please go through various post in wMUsers or through the Developer’s guide to understand which components to include in source control.
HTH.
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