Options for Audio from Computer and considerations of video as well
I just completed my basement, built a small office, additional bedroom, 3/4, computer workspace area for the kids and my home theater area.
I spent an enormous amount of time looking into numerous options/cost/performance etc and can offer you the info I came up with and what I ended up implementing..
Audio from your computer is analog (assuming you have a standard sound card and are using the analog/speaker output). It's possible to run this to your home theater system but here's a few of the catches...
Since the run is likely to be fairly long (20+ feet) you will likely pick up noise from other electrical stuff in the area. Long audio runs of line level audio (about what the computer sound card will send out) is generally done with XLR balanced lines. I dont know what the exact magic number for length is but have heard that runs longer than about 50 feet are better done with balanced lines. Your sound card is 99% sure NOT to have balanced outputs.
An option would be to use CAT5E ethernet cable. I've read numerous writeups from folks who have used this successfully for in-wall audio runs. I did this for 6 stereo pairs of line level feeds from my computer workspace over to the home theater system since I also have a small MIDI home studio and wanted to be able to route audio from the mixer over to the home theater system. So far, it seems to work just fine. The run length of these pairs is about 30 ft.
Here's what I did
My objective was to be able to route audio, digital video and digital still images to my home theater system as well as to run streaming internet radio stations to the home theater.
I ran CAT5E cable from a small closet in my basement (my network media server/network storage device closet) to all the rooms in the basement. I also ran lines over to the wall where the Home Theater equipment would be placed.
I used an ancient (7 year old, 333 mhz pc) as my media server/network storage device. This pc has Windows XP pro loaded on it, an ethernet nic card installed and a huge hard drive in it (160gig). The hard drive is partitioned into two sections...a C drive with the operating system and application programs on it and a D drive that is shared across the network. All PC's in the house, including my work laptop (via wireless card) and PDA via wireless) can access the server/network storage device. This is not really a "server" per se...just a big hard drive shared across the home network.
I store all media files on this shared PC hard drive and it runs all the time. For audio files, I took my entire CD collection, used CD creator to rip them all into high quality MP3 format's (224 bit, just below studio quality) and store them all on the network storage machine. Currently I have over 9 gig of MP3 songs out there (1370 songs at last count). I could use maximum bit depth for the MP3 files but higher bit depth sounded only marginally better than 224 and, in balance, keeping the file sizes smaller helps insure that I dont have data bandwidth problems trying to stream all of this stuff to the home theater system.
At the home theater system I got a box called a "PRISMIQ" network media adaptor. The machine cost's about $179 online, plugs directly into the ethernet port behind the home theater setup and links to the network storage device from which it can stream any/all of the MP3 files, or digital videl and still image files. It can also link to the internet via my router so you web surf on your TV (marginally usefull unless you get the $30 wireless keyboard for it). It is kind of handy however if I want to pull up instant local weather conditions, stock quotes etc.. via an internet link.
It has an ethernet input and audio and video outputs. Only stereo out's so you cant run actual 5.1 etc... surround audio but the sound quality is excellent, it was a simple device to install/setup and suffers from none of the limitations of many of the other network media adaptor devices on the market (you can read consumer revies for many of them on various web sites but most have comments about...various file format oncompatibilities, poor/shakey firm ware, limited number of songs that can be included in any playlist).
While there are other network media adaptors out there, some for as little as $60 retail, the PRISMIQ get's excellent reviews from both pro and comsumer alike. It's been money well spent, has worked flawlessly and was simple to install/setup. It also has a PCMCIA cardslot in the rear so you could plug a wireless netword card into it and link it to a sstorage device/PC through a wireless network.
If the walls in your basement are open, I would strongly recomend this route as it results in no audio degradation of the signal froim your PC and gives you the added bonus's of being able to stream Video and internet content to the home theater setup as well.
Give me a yell if you have specific technical questions and I'll be happy to help.
Karl