Me: If you are referring to a simple linksys hub in example 1 with no NAT/firewall ability then you are going to have to pay the cable company for the additional IP addresses. That will be a fiscal issue which you have already mentioned yourself, so option 2 is the better way to go.
You might want to "bite the bullet" and spend for the wireless router right now, If you don't want to use it now you can disable the wireless IIRC, but it will save you two purchases that will probably exceed the cost of the single cost now.
Other than that, option 2 is pretty much "plug and play". Set all the devices to dhcp both the IP and the DNS and it should run right away.
