Strategies for tracking INTERNAL PROJECTS

Well, it didn't take me long to discover the limitations of using PROJECTS to track internal work by department. For example, if MARKETING is a project, then when I have more than a task - say a real marketing project like redesigning our logo or something - I'm out of luck. So .... that seems to leave 2 options and I'm curious to know what others have done.

Option 1: Multiple internal clients
Using this strategy we would set up each dept/work area as a client. NSI Mktg, NSI Finance, NSI HR, NSI Sales, etc. (NSI = our company)
.....BENEFITS: projects, modules, tasks all still available
.....DRAWBACK: I'm thinking no single report would easily capture all the internal work we're doing.

Option 2: Single Internal Clients, use MODULES for departments/work areas.
Using this strategy I would select NSI Internal as client, then for a marketing project I would always select the module NSI MKTG.
.....BENEFITS: With only one internal client it would be easy to get reports on how much internal work is done; using modules it seems we could also get reports by department or work area via the modules.
.....DRAWBACK: "modules" not available for projects. For a lot of projects this isn't likely to be an issue, but for something as massive as the rollout of intervals to staff, contractors, etc., I've already conceptualized the project in modules.

THOUGHTS ??? If you use modules on interal projects, how much would you miss them? If you use multiple internal clients, is it a pain to pull together full-company numbers for reports? etc - any thoughts helpful!!