Thanks for your response - I was able to find the answer before your post, but you are 100% correct!.
Getting the 12 awg, 4 conductor on advice from someone who has the Niles 8630 AV in their home, so that is why I was looking for it. I found some for sale at smarthome.com. I might not get the 12 awg as you stated before, 14 awg should do the job inside as the runs will all be under 200 feet.
I believe (my understanding from talking with same person who installed their Niles) that the speaker wire needs to go from the Niles system to IR key pads, and from key pads to speakers. But I see what you are saying. The speaker wires can run from the Niles direct to speakers, and keypads direct to Niles, where the Niles would (via the keypads) turn up or down volume on speakers which are directly connected to the Niles system, I believe that is what you were saying.
I only have the Niles receiver so far, as I am fine tuning my layout and seeing exactly which zones (rooms) I will need actual IR keypads (IR because they can also be controlled by hand remote, right..) and which need plain old keypads (where I will have to "manually" switch between source and turn up/down volume), along with how I am going to do one room for surround sound ( I have downloaded and studied {I think correctly} the NILES manual).
Basically I am going to have an inexpensive - moderate priced home theater receiver that will power the other three speakers, with the NILES controlling the other two speakers in one of the zones. The receiver will not have to control any source componets as I plan to have the NILES do that. Is there an easier way, i.e. speaker ampliefier or something that I am missing??
Looooooong post, thanks!