Rick,
To understand your
"the second model also assumes that the effect of errors is multiplicative, whereas in the generalized linear model the effect of the errors is additive. "

I just express it as Mathematic way, that is right ?
For the first model( GLM ):
Log(Y+eps)=X
it is additive.

For the seconde model( Log(Y) ):
Log(Y)+eps=X
==> Log(Y)+Log(eps)=X
==> Log(Y*eps)=X
it is multiplicative .

But Honestly, I like the first one better.

Xia Keshan