Pekelo says "E ho`i no au e pili" while Mr. Sproat says "E ho`i no wau e pili". Huapala.org has "au". I always understood Mr. Sproat to be the ultimate "song collector", and I thought whatever he says is gold. Therefore, I had been singing it as "wau".
Which is correct? How does the difference change the meaning of that line in the song? Any help is greatly appreciated.
Doesn't change the meaning at all, it's an acceptable pronunciation variation. I tend not to use the "v" sound in that case at all, using the "w" sound, which functions as a glide from the "o" at the end of "no".
'Ae, wau and au both mean I. According to my puke 'olelo Hawai'i, which one to use depends on which you think sounds nicer in the sentence. Other people may think differently, though...