I'm familiar with both your examples. We used to use option 2 that you have described when our server used to have just the 1 NIC. Now that it has 2 NIC's we went for your option 1.

Is there a specific reason why with option 1, the LAN side and the INTERNET side need to be on 2 different IP ranges?

1 issue that I noticed, is that we use pcAnywhere to connect to the computers on this network remotely. But when we use option 1, we can only access the main server, and not the other workstations directly. With option 2, you can choose which workstation you want to connect to, it gives you a list of those on the network.

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Chris