I shave all my pubic hairs, and at first, I did get the little red bumps, but they're gone now, hardly ever get them. What I do is use a shaving cream for sensitive skin, a man razor, and put this product called bikini zone on afterwards. Works like a charm!
I've done the waxing thing too, and I liked it, but it is kind of pricey, and I dont know if I trust myself doing it to myself >.<
hope that helps=)