Db design for data update approval

I'm working on a project where we need to have data entered or updated by some users go through a pending status before being added into 'live data'.

Whilst preparing the data the user can save incomplete records. Whilst the data is in the pending status we don't want the data to affect rules imposed on users editing the live data e.g. a user working on the live data should not run up against a unique contraint when entering the same data that is already in the pending status.

I envisage that sets of data updates will be grouped into a 'data submission' and the data will be re-validated and corrected/rejected/approved when someone quality control the submission.

I've thought about two scenarios with regards to storing the data:

1) Keeping the pending status data in the same table as the live data, but adding a flag to indicate its status. I could see issues here with having to remove contraints or make required fields nullable to support the 'incomplete' status data. Then there is the issue with how to handle updating existing data, you would have to add a new row for an update and link it back to existing 'live' row. This seems a bit messy to me.

2) Add new tables that mirror the live tables and store the data in there until it has been approved. This would allow me to keep full control over the existing live tables while the 'pending' tables can be abused with whatever the user feels he wants to put in there. The downside of this is that I will end up with a lot of extra tables/SPs in the db. Another issue I was thinking about was how might a user link between two records, whereby the record linked to might be a record in the live table or one in the pending table, but I suppose in this situation you could always take a copy of the linked record and treat it as an update?

Neither solutions seem perfect, but the second one seems like the better option to me - is there a third solution?