You're very welcome, I'm glad to help!

I am almost as fond of flags and heraldry as of maps. Consequently, I've already past a lot of time to improve my own techniques in that matter.
I think you're right : your number 2 is the better one According to me, it has the better balance color/contrast and a good look.

In fact, in my sample, I used "multiply" and "clear mask" on the second. But I didn't get the good colors and the best resolution of texture/shields. I already prefered the "multiply" effect though!