Output 2 is generally used for exterior speakers and Output 1 is used for interior speakers. The difference is that Output 2 is siren only, while Output 1 also gets voice announcements.
For each output, you want to keep the combined impedance of the attached speakers between 4 and 8 ohms. So if you have two 8 ohm speakers, like the Elk 70 or SP35, connect them in parallel, which will give you 4 ohms. If you have four 8 ohm speakers, wire 2 speakers as a pair in series (for 16 ohms per pair). Make a second pair, then wire the two pairs in parallel with each other to get a combined result of 8 ohms.
For speakers like the SP12F, which are 32 ohms, wire 4 of them in parallel to give you 8 ohms.