Option 1...and apologize like heck to the guy who sent the smail. Remind everyone in the league that it is a good idea to send your proxy to the guy who picks behind you.

B. In the NWP we have specific rules for how proxies work, but as long as they are followed, they are always honored.

If there aren't specific rules, I'd say A.  A proxy is someone who is supposed to act on your behalf -- if he doesn't act (for whatever reason), I figure it's the same as you missing the pick yourself. 

Not sure what I'd do in this case - I'd have a talk with both owners involved.  For future reference though, I'd just say that if you need a proxy pick made, like FRAZZMAN80 said, send it to the guy who picks after you - and also, the three or four that pick after him.  That way, even if one or two of them aren't on-line at the time of your pick, everyone else after you will know that YOU want that particular player.  You can never send a proxy pick to too many other owners - as long as they're scheduled to pick AFTER you are.

I've stopped asking for proxies entirely.  Depending on how far away my pick is, I just post in the thread the list of 3 or 6 or whatever players I want.  I think a lot of owners flatter themselves by thinking someone's looking to "steal" their homework.  

Had the time slots reversed. The owner who sent the proxy picked after the owner who posted for the player first.

Lots of good points made in this thread.  There are several ways to prevent this issue from happening entirely, two of which are:

-- Post your proxy publicly
-- Send your proxy to many owners (and in the NWP we require you to make a post in the draft forum that you have done this - that way EVERYONE knows you have sent a proxy, and they know who has the relevant information).  Again, in the NWP, if you do this, your proxy is automatically honored, even if whoever actually posts it does so late.

if it's a P.o.C. player why not just post it publicly as an open proxy? That way, when your time rolls around you are automatically covered. I'm 12 hours opposite East Coast time and do that with many of my draft picks...even with non-crap players.