Those approaches aren't mutually exclusive, personally I'd mix them up a bit:
<fieldset>
<label for="name">XXX <input type="text" id="name"/></label>
<label for="email">XXX <input type="text" id="email"/></label>
</fieldset>
Although to get a right aligned label (something I'd personally avoid because it's harder to scan visually) you'll need to have an extra element around the text that isn't around the input, so I'd go for
<fieldset>
<div class="label_input"><label for="name">XXX</label><input type="text" id="name"/></div>
<div class="label_input"><label for="email">XXX</label><input type="text" id="email"/></div>
</fieldset>