I've read that the best compost pile is one placed under an oak tree. From my experience I'd have to agree that the oak presents an atmosphere which makes great compost.
I'd shred the leaves first to quicken the process.
I agree, chop them up. I saw on gardening by the yard on HGTV where he used a string trimmer in a garbage can full of leaves to do it, or if you have a mower with a bagger that is what I use, or mow it then rake it.