SEO Question.

[HellRZR]

SEO Question.
Presently my website is all installed in /forums directory.

As far as Google or SEO in general, what is the best setup to have?

Is it better option 1
Leave installation as it is, and do a 301 redirect?
Meaning point mywebsite.com via a 301 redirect to mywebsite.com/forums

-or-

Option 2
Follow this procedure http://www.vbulletin.com/docs/html/m...insubdirectory
and have my website setup as :
mywebsite.com = CMS
mywebsite.com/forums = FORUMS

Which is the best route?