The anova summary table is
Source df Expected Mean Square
F f-1 V_E + e*V_R + r*e*U_F
R|F (r-1)*f V_E + e*V_R
E|R|F (e-1)*r*f V_E
Total f*r*e - 1
(Notation: V is the population variance of a random effects.
U is the quasi-variance of a fixed effect, with denominator =
the df of the effect, not the number of levels of the effect.)
How are you doing Method 1? Treating it as a one-way design
with f levels and r*e observations at each level? That would be
equivalent to pooling the R|F and E|R|F effects. The resulting
error term for testing F would be correct only if V_R = 0.