To me, the first one is more correct. The way that I have always collar conditioned my dogs and was taught to do is to give the command, give the dog roughly 2 seconds to comply, then give the command a second time while giving the collar correction.
So it would be:
"sit" 1, 2...
"SIT" + lowest possible stimulation until the very second that the dog begins to move into the sit, here, etc.
I'm wondering if this is what the manual was saying to do?