Hey Brian, My vote is option 1 if you heat the house with firewood most of the time anyway. (And you're in your "forever" house)
Yep Brad, gonna' die in this one- too old to move. In fact, far too old to be doing this kind of reconstruction but it was not my choice.... If you are familiar with it, how much of a nightmare is it to duct an entire ceiling with a new A/C install? And I do not believe I can get a return at the bottom of the first floor so the return intake will be on the second floor, and all the first- floor air will have to run up the staircase. ?? Thanks for the input- I would really prefer to make a decision I do not regret later :-( Brian