We are having "B list guests" and don't feel bad about it one bit. Not only that, but some guests aren't allowed to bring guests either. Our reception hall only seats 180, so that means 90 people with their plus one. If we divided that in half that would be 45 guests from each side. Add to that each plate is 25 dollars, we want to keep it intimate. Our deciding factor deciding who made the regular dining or dance/late buffet was, "If we weren't getting married, would we take them out to eat and pay for everything?" The no guest rule came from people on both our sides being single and "scraping" a date for the wedding. We wouldn't take a stranger out to eat, I'm not paying 25 dollars plus booze and cake for one. Our "B-listers" will get an invitation that says, "Ceremony at two, dance and late au de vours to follow at 7 (or 8)". We will be having a pizza buffet put out at 8 pm for those people and for our drunks.

In your case, do what you feel is right. I personally wouldn't have two receptions because that would have the potential of being more expensive than the one. Two hours is not an unreasonable drive either for your guests. I'd really reconsider your friends if they get offended over not being invited to dinner. You wanted to share your day with them, that should be previlage enough. If anyone calls you out on it just let them know you'd love to see them on your special day, which is why you invited them. Unfortunately, due to finances/space/etc. you had to keep the dinner guests to close friends and family.

We're having "B List" guests in that we have a tiered system of inviting people on a separate list once people on the first list have RSVP'ed no. We only have room for 100 and our venue is $150 a head so we really need to keep costs down.

When we move on to our afterparty at a venue across the street we'll be inviting some friends who weren't invited to the ceremony/reception due to those space issues. I'd feel very very weird inviting guests to the ceremony and then telling them not to come back until dancing, bit that's me, to each their own.

Easy for me - no dinner at all! Snacks and cake are good enough. That way everyone can come and I wont go broke

That has to be difficult with so many family members. Both of our families are small, and we're only inviting about 70 people total. Because we invited our closest friends only, nearly everyone has said yes. We're expecting around 60 to come. But, if folks are from out of town and aren't your closest friends, I would anticipate that a good many more will RSVP "no."