I recommend against the Edit button approach. Look at how Word and Excel work. As soon as you launch them, you are in Edit mode. Open a specific file, it is in Edit mode.

Now, having said that, according to Windows UI Guidelines, the fields should be Disabled. The Disabled color is an indicator to the user that they have to do something to made the field enabled.

>Well, I want it to show inside the textbox because they have the option to hit the "Edit" button, and then it will allow them to edit. Is there a better way?