matrixed video distribution advice needed

I have the following video sources
1 TivoHD box (HDMI & component)
1 Verizon FIOS HD-DVR (HDMI & component)
1 Xbox 360 (component-only)
1 PS3 (HDMI & component)
1 Vista Media Center PC (VGA & DVI)(don't use the TV tuners and it's only in the mix because it plays codecs without transcoding)

I have the following display devices (sorry I don't have the exact models)
Pioneer Kuro 1080p (HDMI & component)
Panasonic plasma 720p (HDMI & component)
Sony RPTV (component-only)
Small Sony LCD (component & VGA)
I also have a non-HD tube TV that isn't really in the equation and I might purchase a projector to replace the RPTV

Here's the matrix I'm planning to get
http://www.amazon.com/review/product...owViewpoints=1
Any opinions on this?

I would like to run everything to a matrix that supports two outputs. The Pioneer is my main display and I'd like to connect everything to it via HDMI (except the xbox). My hope is that I can feed the component video outputs and SPDIF from my video sources into the matrix.

My issues/questions/concerns are

1. Obviously, will component work at the same time as HDMI especially if the HDMI video source is turned off? I've been testing but it's a trial-and-error process.
2. Would I be better off running CAT5 or CAT6 through my walls instead of component video and digital audio cables? My guess is yes but I don't know how expensive the converters are.
3. How do I handle the digital audio without a receiver? For example, the Sony LCD is our kitchen TV and I just want the sound coming through the speakers. It only has the red/white RCA input jacks. Is there a way, at the wall plate, to transform that? I would eventually like to have receivers/speakers in each zone but that's not in my budget for phase 1.

I'm sure I'll have more questions to come.

I was really hoping to avoid an external DAC between the wall plate and the TV. Here's a question (and forgive me, I'm new to the world of distribution), is there a piece of equipment, some type of controller, that could live between my matrix and my structured wiring? If I run CAT-5e or CAT-6, I'm assuming that it would have no problem carrying either analog or digital audio; I would just need the proper baluns on either end. I guess a receiver would work but I'd have to have a receiver for each zone and that seems like overkill, plus I don't need all the functionality of a receiver. One piece of rackable equipment that could modify both the video and analogue signal to the desired type and then send it through CAT would be great.

I think that's wishful thinking. At least without breaking the bank. I'm starting to realize it might be cheaper to cut my losses in regards to my video displays and upgrade everything to HDMI. Ugh.

Well, the majority of the rooms will eventually have a receiver or at least be able to handle the digital audio signal. I had wrongly assumed the matrix I was looking at would only handle digital audio but it appears that it will handle digital or stereo so in theory, all I would need is the proper balun, right?

Any thoughts on this matrix switch?
http://www.amazon.com/Cables-Go-Comp.../ref=de_a_smtd

The TX appears to 1X2, unless I'm looking at the wrong thing. I'm not sure I need two outputs per input (from my matrix). Am I looking at this wrong?

Are there receiving units (baluns) that are built into wall plates? I can see how these could be mounted in new construction but in existing construction I don't see how I'd mount them unseen.