Approach 1 is correct (there's an MS-8 thread with this info).
The only time I'd use the amp xover with an MS-8 would be with tweeters. With underseat woofers and trunk woofers with different path lengths, you would confuse the heck out of the MS-8. The tweeters are not as sensitive to path lengths, and the MS-8 may not adjust them in time anyway - but in the E9x, the path lengths for the mid and tweeter are identical anyway.
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