My vote is for option 1, create a contest with a deadline and reward.  I know there is plenty of talent out there that would participate with if a reward was posted.

Yes i agree what is going on here could be done in a more professional manor.  But that is ok, nothing has been set in stone yet. There is still time to set things up a little better.  I am not familiar with the 99designs website, but that seems like a good idea.  I bet as long as we set up a reward we could get some talented people to submit some cool designs regardless.  If we were to restart this process what is the best order of procedures?  Something as follows maybe?

1. Start thread in forums to collect donations for a few hundred vert for the logo prize
2. Once donations are collected, start thread in 99designs or somewhere else to post the logo ideas
3. When all designs are posted or after a week or so take a vote on the options

This could be a good idea, but you are doing it prematurely.  Get the community to come up with ideas, there are brilliant graphical people out there who could make numerous great designs.  Maybe post a reward for whoever wins the vote.  But give the guys a few weeks to make their designs first and collect donations for the reward.  

It might not be a bad thing giving the coin a "fresh" new look, we could still have the option to vote on the old design if we dont like the new ones, but i dont think it would hurt to see what other people come up with before we entirely dismiss the idea.