I have on order a DSA STG58 from DSA.  I have requested a type 2 receiver and it is taking a long time.  The FFL called and was informed that one on a type 1 receiver may arrive sooner.
Considering that I am not in any great rush to get my rifle anyway, should I just wait on the type 2?  Isn't the only difference the lightening cuts?

Type 1 is the one with the lightening cuts.
Type 3 is the one without the lightening cuts. It is usually an Imbel receiver is good example.
Type 2 I think is the in between 3 and 1 receivers. There is a good picture on the HK91.com board about the different FAL receivers. Some guy thought the G3 can take the FAL parts.

Assuming both come from DSA, is there any advantage between the type 1 or type 2.
Or, which is more desirable?

Mine came with a Type II. I orderd a Type I but they called and said the Type II would be faster, so I said sure. I love it! I haven't figured out any real difference between the them.

Troy, the type 3 receivers are the ones coming Brazil.  The do not have the cuts in the receiver, looks blocky, and adds a few ounces to the receiver.

Entreprise Arms is also marketing a Type III reciever at a currently excellent price, about $170. If you are into saving a few ounces or into "authenticity" is the only reason to go with a type 1 or 2 over a 3. Strengthwise it's the type 3, then 2, then 1.

Besides the cosmetic differences between the different receiver types, there's also one fundamental difference between them. The type I was introduced as a forged and machined receiver. In full auto use, it was found that reinforcing the area around the rear lug was necessary. This became the type II with the distinctive scallop towards the rear. Otherwise, the type II retained all the lightening cuts of the type I receiver. Over time, Fabrique Nationale realized that producing a receiver with all the extra work milling out those lightening cuts was too expensive. They introduced the type III cast receiver as a lower cost alternative. In theory, it won't last as long as the forged type I and II's. However, I don't recall anyone ever firing enough ammo to destroy one.

With that said, the type III receivers by IMBEL of Brazil are supposed to be forged, not cast. But be aware that many domestic FAL receivers are cast (Hesse, for example). DSA receivers are forged and milled from a 19 lb billet, while Entreprise and Hesse receivers are cast. There are a few other US FAL receiver manufacturers but I'm not sure what manufacturing process they employ.

Several companies produce type I's. So far only DSA produces type II's. Entreprise produces type I's and III's (their type III is much cheaper than their type I). Williams produces an alloy type I, while FAC (Federal Arms Co.) contracts someone to produce receivers for them. Also, Olympic Arms and DPMS produce FAL receivers.

Maybe the best news is from DS Arms there is no cost difference between the Type 1 and the Type 2.

At least this was true last time I checked.

Just one minor note here, DSA doesn't make their own receiver, they sub it out.

Thanks for the information.
Troy, the pics were a big help, thanks.

kcsturm, what is the source of your information regarding DSA farming out the manufacture of their receivers ?