2. That's my method and it came after trying almost all the other setups and systems.
As to folk getting upset, many want same as the tape quality but it SHALL suffer generational loss. This is like some rule that you can't change. It's pretty good but some folk just don't get it. It's not as bad as some systems (when I use the noted device above) but then you play it on a 60 inch screen and VHS tape shows all the reasons why we saw the end of that.