|For a guide on setting up your network how you wish to, click on my name above in my response and read my "how-to" guide titled, "Add a second Router to your LAN"|
Since you want to have two separarte subnets that can talk to each other you'll want to use version 2 (connecting LAN port of upstream router to WAN port of downstream router).
It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.