Re: Managing a windfall
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I've placed my cashout in a mix of Vanguard funds: 60% domestic equities, 20% intl equities, 10% bonds, 10% REITs.
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So far, very good job. My only quibble is you might not need the bond fund at your age. The highest long term returns are in equities.
As far as how much to cash out of your companies stock, that depends on what you think it's true value is, as well as how many future options you think they will grant you as well. If you think the company is over valued, or that you will be rapidly given more options, sell all you can when you can.
As far as a house, it's not bad advice, but it all depends on the cost. If your rent is less than the after tax cost of the house (not just interest, but taxes, insurance, and maintainance and lost income from your downpayment), then you'd be counting on appreciation to make it a good deal.
Appreciation has been very hot in many areas lately, regression to the mean (and the idea that interest rates can't decline much further) says future appreciation is likely to be much worse, or even negative for a time.
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