these are probably equally bad but what do you consider a more dire situation, a submitted recommendation thats less than stellar (no personal or professional indictments, just not enough examples) or adcom perception that the applicant wrote the letter him/herself?
I would say that Adcoms understand that various recommendation writers have differing levels of competency, and also different levels of familiarity with the MBA application process. I think that if a recommendation is positive, but doesn't give examples or something, it can be forgiven. If a recommendation is lukewarm, then you are in trouble.
I think that situation 2 is a killer though. If they think you wrote it yourself, that's really bad.