A.T. said:
What about Schwarzschild coordinates?
MTW works out the shapiro delay on pg 1107 in PPN coordinates. These are basically the same as isotropic coordinates (not the usual schwarzschild) - though the surfaces of time simultaneity will be the same for isotropic and schwarzschild coordinates.
They use the cartesian form of the isotropic / ppn coordinates (dt, dx, dy, dz).
MTW's derivation is approximate - they spend some time explaining why assuming light travels in a straight line in PPN coordinates (rather than the actual curved and not time-invariant path it actually follows) gives small errors, due to Fermat's principle.
The basic answer they get with these approximations is:
<br />
t_{TR} = \int_{-a_t}^{a_r} \left( \frac{g_{xx}}{-g_{tt}} \right) ^ {\frac{1}{2}} \, dx<br />
where ##-a_t## and ##a_r## are the x-coordinate positions in the ppn system. (There is a parameter b in the result which is the constant y-coordinate in the ppn system as well). These are hard to observe, a later formula eliminates them by considering the rate of change of the Shapiro delay.
I would say that the answer that bests fits the above derivation is "both". Certainly we see ##g_{tt}## there, we also see the spatial terms ##g_{xx}##. It's a bit hard to summarize this in the simplistic way the thread is being discussed :-(.
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Probably the best simple answer is not an answer, but another question, i.e. to ask "what do you really mean by distance? in GR? How are you measuring it?".
There is certainly no conflict with the notion that the notion of proper distance is based on a constant speed of light though, which seems to be the thrust of the question. But the details of carrying out the calcuation (even with an approximation) typically involve setting up a coordinate system, using changes in coordinates (dx - which isn't a distance), and calcuating the proper time by using the coordinate change dx and the non-constant coordinate speed of light (the number in the square root).
MTW makes a few more approximations, and subtract out a Newtonian part, and get an answer that depends only on the ppn parameter ##\gamma##
There may or may not be other ways of calculating it, this is what my textbook does though.