which is a better way to get listed

[gts6]

i have blog solution and wondering other opinions on the better of these 2 ways to set it up for long tail keyword with low volume searches:

method 1: put blog solution on 6 or so different servers with links between them without a closed circle of links, and have each installation have one or 2 blogs (that update automatically)  on each server

method 2: put blog solution on one server and allow it to automatically create slowly maybe 12 or so blogs that auto update.

so 2 methods with each method having the same number of blogs in each way, which is more pleasing to the search engine? is there a penalty from method 2 if they are all from the same server and same account?

and i am only using the # of blogs as 12 just for this example, i just want to make it clear that using both methods, which is the better way to go.

[Scott]

Obviously, when you're speaking of putting the blogs on 6 different servers, you'll have these on different domains and on different IPs.  I assume though also, that when you refer to putting all 12 blogs on the same server, you'll still put them in different domains and on different IPs?

[gts6]

to keep the comparison even we'll use 12 blogs to compare apples to apples:

when they are on the 3 different servers they are:
each server has a domain with TBS installed, and a subdomain (with a separate real domain name pointing to the subdomain) and TBS also installed on the subdomain.
so there are 3 different domains, with 1 subdomain on each  with 2 blogs on each TBS install. this makes 12 blogs.

when they are on one domain, they are 1 domain with 12 different blogs, as if i installed blogsolution on one domain and just had it automatically create 12 blogs on it.

so you would have 12 blogs on each method. im just curious as to if there is much of a difference in the eyes of the search engines with one method over the other. or is there not much of a difference to worry about.