Jenna's mom - with option #1 - yes, it is basically one nap if it's long enough and your lo can make it til bedtime. When we started with Abby, I tried option #2 for a week and had a week's worth of 1 45 min nap and a majorly grumpy baby, so I switched to option #1. She'd nap for usually 2 hrs in the am, so I'd do a 30-45 min catnap late in the day (yep, usually around 4:30), and she'd go to bed at 7:30 still. If she didn't take the catnap, she'd go to bed at 7, or 7:30, depended on how she was doing. If she wasn't crabby, I'd keep the regular bedtime. Especially when she'd sleep 2.5 hrs, she'd almost always refuse the catnap, so we just worked with bedtime based on how she was doing. Once she could do 5 hrs of A time, she did all one nap days with a regular bedtime, no problem. Does that answer your questions?
Krissy - I'd say don't tweak your routine just yet. Once he's ready for more A time, then you can start extending the am A time. You can keep doing your usual wake up from the first nap (choosing option #2) to navigate the switch. Since he's already used to being woken from that nap, that should make your transition fairly easy. Eventually, you'll want to be waking him earlier on in the first nap, and going for a longer pm nap, and then they'll be no morning nap at all. You can probably split his A time to 5.5 hrs in the am and 5.5 in the pm with a 2 hr anp, that should still give you a 13 hr day. But that's probably several months down the line for you yet.
hth - the transition is rough, but you'll make it!!!