I personally would go for option 1 because it seems freakin sweet. However, getting published is pretty sweet too and admissions love seeing it, so I've heard.
As for option 1, you could work and volunteer at a clinic few hours a week to get patient contact. For option 2, publications take a very long time to get out there. I just got published from my work as an undergrad 3 years ago...
Also, will you for sure not get any credit in option 1? Maybe after getting in with the people that run the show you can persuade them to write your name on something. Worth a try...
I think option 1 is better, personally. Even without the publication...
anyways, goodluck with your decision