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Picture #2 eliminates high current switching in the relay, reducing the possibility of welding the contacts and starter over-running, and prolonging relay life, but what could go wrong? You could probably use a starter relay from a lawn tractor (which actually cost more).
Where is there a 4 gauge wire?
PS: The solenoid is on the starter.
Afterthought: In pic #2 why do you even need a relay? Vehicles were wired that way for decades. Just use the solenoid.
Picture number two is correct. That is also how ford did it in later years. You need the first relay to trigger the second relay due to amperage requirements of the starter mounted relay.
Mixerman....I dont have a relay in the wiring for picture #2, just the ford solenoid?
I am thinking there would be effectively two solenoids, one the ford solenoid, the other in the starter to engage the starter.
What you are calling a Ford solenoid is actually a relay. The solenoid on the starter already incorporates a high current relay. The Ford relay is actually redundant as the starter solenoid primary circuit is very low current and can be fed directly from the ignition/starter switch, and the coil boost circuit can be parallel wired to the primary solenoid circuit as well because it's only used during starter operation. That said, there is nothing wrong with having a second relay.
I had the same dilemma when going to a mini-starter. I went with #1, because I didn't really care for having the big cable to the starter "hot" all the time (runs near headers). Also as a practical matter, I didn't like having two big lugs on one terminal of the original solenoid. That same terminal would also be used for supplying power to the horn relay and the whole rest of the truck, so there would be quite a stack of stuff on one post.
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