I would do the 1/0 to a dist block and then 4 gauge to each amp. Then back it all up with a GOOD battery, like a big optima. That's how I have mine set up. Capacitors don't really make a big difference, and you can get a good battery for less than the cost of a capacitor that would make any difference. And a good battery will help your entire electrical system, not just your audio. The above mentioned setup would be nice, but unless you're going all out with a huge system, it's not cost effective for the average person to add additional batteries and high output alternators.
In short, go get a more powerful battery, and use the correct size wiring for the amps you're using and you should be fine. By the way, what's the size of your amps? Rms and peak wattage on both. RMS is the more important one.
I put my dist block in the center console right below the cupholders. That way, if you're mounting the amps under your seats, you can just run the power wires under the carpet down to each side.