My colleague and I are debating which of these methods to use for auto generating user ID\'s and post ID\'s for identification in the database:
One option uses a single
"Auto generating user ids and post ids for identification in the database"...why not use a database sequence or identity to generate keys?
To me your question is really, "What is the best way to generate a primary key in my database?" If that is the case, you should use the conventional tool of the database which will either be a sequence or identity. These have benefits over generated strings.
I guess my next question is, what reasons are you considering GUID's or generated strings? Will you be integrating across distributed databases? If not, you should ask yourself if you are solving a problem that doesn't exist.