Neil wrote:
I'd say that the narrative voice (1st person or 3rd person) is more important in deciding what can be shown (or told, for that matter) and how.
Within the two options you've mentioned, there are many possibilities and each of them has its advantages and disatvantages. There's a know-all narrator, who gives us insight into the mind of everyone of his characters, and who is also aware of things inaccessible to any of the characters ('Little did they know, as they made their way towards the Federation complex Blake wanted to blow up, that a giant woodlouse was lurking behind a polystyrene rock.') Or, a writer can use 3rd person narrative voice but still reveal only one POV, as in the scene Harriet's posted.
1st person voice may vary in its distance from the narrative it's rehearsing. The person speaking may be in the centre of action, as Cally in your story 'Kriegspielen', or someone who more or less just observes the events, like the boy in Judith's 'Shane'. Temporal distance may also vary, i.e., the story may be told by a character who has no more knowledge than the readers about what's going to happen next, or by someone who recalls the events from the past and is aware of the 'whole picture' ('I still don't understand why, of all the people in the holding cell, I chose to rob him... and now I'm going to tell you about all the trouble this got me into.')
Hemingway is, as far as I know, the creator of the 'eye of the camera' narrative voice, which gives us no insight at all in the characters' stream of consciousness. The narrator has just ordered a drink in a pub and Avon and Blake are sitting somewhere close to him. He knows nothing about their background stories, their emotions or their relationship - all he knows is what he sees and hears during this short period they're sitting there: fragmented sentences, the way they drink or the looks they exchange, an internal joke he may not understand, gestures or facial expressions. Everything else is left to the reader to interpret or construct by himself.
There may be more possibilities, but presently I can't recall them.
N.