|If you use scenario 1 (LAN port to LAN port) this simplifies port forwarding as you only have to do it on the router connected to the internet.|
If you use scenario 2 (LAN port to WAN port) then you would need to create the same port forward on both routers.
It looks to me like you have the forward setup correctly. Typically they are as follows:
port # forwarded to xxx.xxx.xxx.xxx
Where xxx.xxx.xxx.xxx is the internal (LAN) IP of the target PC/server.
When a user wishes to connect remotely, they have to type in the external (internet) IP of your router that is connected to the internet and the rest should be handled automatically by the forward.
For example, I have my home XP Pro PC setup to accept incoming RDC sessions. On my SOHO router, I forwarded port 3389 (RDC) to 192.168.1.67 (IP of my XP Pro PC). To connect, I open RDC on another computer and type in my external IP address and click connect and it works.
If your forward isn't working but all clients can get on the internet, then check the port forward again. You must not have created it correctly.