Won't a "Watch Your Head" sign be enough?

In my last post, I pointed out a few significant problems with the stairwell and support beams in my basement.  I must admit that I've been a little discouraged about these setbacks, but I've satisfied by frustration by demo'ing and replacing the hopper windows (more on that later).

So what am I to do?  I'm starting to settle on two options:

1. The full blown fix (the permit-satisfying route)

This solution is definitely the most complicated.  I am thankful for my architect friend, Brad, for walking me through the approach.  Here are the steps (the pictures from the last post will help visualize the problem):

1. Fix the cantilever problem
1. Weld all the support columns to the steel I-beams
2. Weld cantilevered I-beam to the other beam that butts up against it. 
3. Dig out a 1' x 4'+ swath in the concrete floor on either side of the bottom of the stairwell, and pour a new 6"-8" slab.  Apparently my concrete floor is 4" deep, which is probably too thin for a load-bearing wall
4. Build load-bearing walls on either side of the bottom of the stairwell, each about 4' long.  These 4' sections will support the floor, allowing me to remove a portion of the cantilevered beam. 
2. Fix the stairwell height
1. Drill holes every 4' through the other steel I-beam in order to bolt the wood plate to the beam.  
2. Secure the joist to the wood plate using brackets.  Steps 1 & 2 will secure the I-beam laterally after we completely remove 3' from the center of the beam. 
3. Remove the 3' section of the I-beam that is above the stairs
4. Remove the 10" header on top of the I-beam
5. Remove a 3' section from the 8" joists that are closest to the bottom of the stairwell
6. This part is a little fuzzy...add some extra support to the bedroom wall that is resting on the joists that were removed...or maybe replace some of the joist...or maybe keep some of the joist in place. 

2. The simple fix (permit, what permit?)

This solution simply fixes some of the problems related to the cantilever before I cover everything with studs and drywall.  

1. Weld all the support columns to the steel I-beams
2. Weld cantilevered I-beam to the other beam that butts up against it. 
3. Do not dig out out a 1' x 4'+ swath in the concrete floor.  6" deep is probably a little overkill, and I would only do it to satisfy an inspector.  
4. Build load-bearing walls on either side of the bottom of the stairwell, each about 32" long.  These 32" sections will support the floor, making up for the long run on the cantilevered beam

I'm starting to like Option 2!  ;)  Plus, my father-in-law has offered to buy us a wooden "Watch Your Head" sign from the Amish in Lancaster...

Now I need to find a good welder!