My 70-year old box gutters are in poor shape. They are set into a modillioned cornice at the top of the walls, similar to the style shown here: https://www.flickr.com/photos/rubens1577/9613776861/ About a third (by length) of the cornice is rotten, and the galvanized lining is rusty & full of holes. Because of the rot, the gutter have sagged in the center of each wall, and slope away from the downspouts.

I have three options, which I have not gotten any prices for yet:
1) Have a carpenter replace the rotten sections of wood, and repace the lining with aluminum (I probably can't afford copper). The seams of the aluminum would be riveted and caulked.
2) Have a carpenter remove the cornice altogether, and replace with some sort of fascia that aluminum K-style gutters can hang from.
3) Have a strip of sheet metal inserted under the shingles, run just over the edge of the cornice, and then have aluminum K-style gutters hung off of that. Leave the cornice intact, including the rotten parts.

If you've faced a similar problem, what did you do? Any words of wisdom?
I like the idea of restoring the original cornice, but the seams of the aluminum lining would leak eventually, and I'm afraid I wouldn't find out until the wood rotted through (again).