Software Cheap & Great
For a commercial solution, there is that wonderful little, but powerful word processor called Mariner Write, which does both headers and footnotes & is $49.99 plus tax. It is nice, light and doesn't use much memory at all. No need to worry about spinning colored beachballs with this application.
For an open source freebie which does the same thing, I wholeheartedly recommend iText Express to do your heavy lifting. It works with the Cocoa framework of Mac OS X and does nicely.
There you go- a couple of great bargains!
The Pez Report at Apple Store-East 59th Street.