Migrating from G1 to G2 AND a new server when space is an issue

Here's one for those familiar with Gallery to think about...

I had my Gallery (1) hosted with a provider who had loads of disk space available, and my Gallery grew to several gigs (About 4GB).

I moved hosting provider to one who provides less space (but better performance). I would like to migrate to Gallery 2, move to the new server (the old one is already decommissioned), and resize my photos at the same time.

The resources I have available to me are the new server, and a local FreeBSD server with plenty of space.

So far I have had a play with the G1 import module (which works fine), and the resize module (which only works with uploaded photos, not imported ones).

Because the resizing can be done during the import, I thin kI might have to resize the photos manually (batch job in Photoshop).

The two methods I can think of importing the photos are:

Restore G1 from the old server to the FreeBSD server, resize the photos, then overwrite the photos in G1. Install G2 on the FreeBSD server, import the photos, then copy the G2 installation from the FreeBSD server to the new web server.
Copy the Albums folder from G1 locally, and resize the photos in the albums. Upload the Albums folder to the new web server, then import into G2.

The more I think about it, the more I favour the second option. I'm not sure if the first option will pose problems with the database contents. The second option will mean more data transfer (and time) though.

Is there anything I've not thought of? Has anyone got any better suggestions?

Thanks,
Hywel