R12 Rapid Clone Note 406982.1 - question on copy of environment

We are currently on R12.1.3 and 10.2.0.5 db on RHEL4 32bit. We would like to create a copy of the current server  Srv1 onto a new test server Srv2  and then upgrade the db to 11.2.0.4.

I understand I have to follow  R12  Rapid Clone Note 406982.1 - Which is the best method to do this?

1. Take a complete copy of source server Srv1 to new test server Srv2

     On Srv2, Follow  all steps outlined in Standard cloning (Making a copy of an existing Oracle Applications system)

OR

2.  On Source server Srv1, perform Section 1 and Section 2.1 of Standard cloning (Making a copy of an existing Oracle Applications system)