If you file inland, you must be in Canada with him. It is recommended that you do not leave Canada during the entire process, which should take 1-2 years. (One year is pretty optimistic.) If you leave Canada and for some reason are refused reentry, your application is considered abandoned. To file inland, you would enter as a visitor, and then you can apply online to extend your visitor status (should be submitted at least 30 days before your visitor status expires). I asked for and received a one-year extension, stating I wished to remain with my husband while my inland PR application was being processed. With the inland application, you may submit an OWP (open work permit application) which will be processed after stage one approval (sponsor approval, also called "AIP" - approval in principle). There's no way to know for sure how long stage one will take. Probably not less than 6 months, and probably not much more than a year, but CIC is pretty inconsistent. After you get the OWP, you may work. Also, in Québec, you are eligible for health care after AIP (you apply for your "carte de soleil" - health card, and then there is a three-month wait) AND free French classes. After AIP, the next step is stage two approval (also called DM - "decision made"), which could take just a few months, or another year.
If you file outland, you file EITHER from within Canada or from the Netherlands. You are free to travel, and if you should be denied entry to Canada at any point, it will not affect your application. When staying here with him, you would still need to keep your visitor status current. There is no OWP option associated with an outland application, and health care and French classes wouldn't be available until after you become a PR. Stage one approval takes around a month, and then the current processing time listed for the Vienna office states that 80% of applications are processed within 14 months after that. Looking at the dataset here: http://data.gc.ca/data/en/dataset/427337d0-7c36-4fed-8428-c6a63f8c19b3, the most recent detailed data CIC is making available (Oct 1, 2012, to Sept 30, 2013) shows that 20% of all family class spousal sponsorships were completed within five months, 50% were completed within 8 months, and 80% were completed within 13 months. If CIC requested an interview from you (which they'll do if they don't believe your relationship is genuine; put together a strong application with solid evidence showing your relationship is real and ongoing, and you should be able to avoid that), you would have to go to Vienna for the interview if you file outland.
It looks like the Vienna office is probably a bit faster than filing inland. It's possible, if you're one of the lucky ones, that it could be MUCH faster. If you plan to travel during the process, that likely makes outland a better choice. The OWP sounds like a huge benefit, but if you could get full PR in a year or 15 months, or you could get AIP and OWP after 10 or 11 months, then wait another indeterminate period of time (could be two or three months, could be 8 months or a year, could even happen at the same time as AIP - I got AIP and DM on the same day, but that's not the normal process) to become a PR, is that extra few months of working really worth it to you? Also, if you apply outland, you can "flagpole" (drive to any U.S. border and then come right back into Canada) to "land" i.e. officially become a PR) at any time after you receive your COPR (certificate of permanent residence). If you apply inland, after DM you must wait for the Montreal office to contact you to schedule a landing date. Montreal is not as slow as some of the other local CIC offices, but this still adds a couple of months to the end of the process.
(There's also some information I could give you about Québec's little "quirk," one extra step in the process for Québec applicants, but I don't want to add any additional confusion, as it's pretty much the same for either inland or outland applicants.)
(Also, please forgive spelling errors. I leave my spell check set to French, so it's of no use to me in English - too lazy to switch it back and forth constantly.)
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