I wouldn't recommend the latter method, especially if one has lots of fonts. Slows down the machine, consumes lots of memory, no control over fonts
And only ATM supports MM fonts (if you still have some). I use Suitcase on one machine and ATM Deluxe on the other. Of course I organize them in groups and activate them when I need them (besides of a couple of fonts I use very often). I even try to remove as many automatically installed TT mess from the "fonts" folder in order to control them by the other programs. In the Suitcase manual (downloadable from Extensis as a PDF, even if you use ATM), you'll find indications on which fonts have to remain in the Windows Fonts folder in order to keep it work correctly. As far as I remember, the ATM documentation has this information, too. There are very few...
Christoph