They're both correct. The first one is poetic, old-fashioned and more like the Germanic structures of Middle English or early Modern English. The second one sounds more natural to modern ears, but it lacks the poetic flair that the old structure conveys.

2

Both are correct English. English is fairly flexible in word order. #1 has an unusual word order. #2 has the everyday, customary word order. Unusual word orders are sometimes used for emphasis, or to produce a feeling or an effect. This is a special case, because this is a common saying, and _it is commonly quoted in the first form._ It is actually an English translation of a saying in ancient Greek. I find that Wikipedia suggests that the word order might be intended to remind us of the word order in the original Greek. But it also suggests that it might echo a line from a famous and much-quoted 1642 English poem: "To Althea, from Prison," by Richard Lovelace, which begins "Stone walls do not a prison make Nor iron bars a cage." In any case, phrasing #1 is correct but unusual, and is _intended_ to give a flavor of something ancient or old-fashioned. It is intended to sound dignified, or weighty, or wise.

One single instance of something does not indicate the whole or any general conclusion about the occurrence. "One swallow does not a summer make." It means that seeing one species of bird doesn't indicate that the warm season has arrived. As Jonathan explained, it's more poetically expressive because of the Old English flair.