The biggest problem with video distribution in a home is that there are 3 basic types of home video: Composite, Component, and S-Video. HDTV requires component (or DVI/HDMI), most DVD players also include component, and video game systems as well. VCRs typically do not have component though. Also, if you add security cameras or anything else to the mix, you are talking about at least 2 different formats - component and composite.
So, you need, typically, at least 2 video switchers, or a different solution.
Solution 1 - Traditional
Get a composite and a component switcher from Extron (
www.extron.com)
You can also find some Extron switchers on eBay that are a fraction of the MSRP and far under cost. Keep in mind that a RGBHV switcher can switch almost any analog signal you throw at it. That is, if you pick up a Extron 128HVA switcher (similar to this one:
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&category=21169&item=7515256018&rd=1&ssPageName=WDVW), then you can switch something like 6 component sources to 4 displays and 6 composite sources to 4 displays. There is some additional adaptability there which is cool.
OR - you could just get a component switcher the size you need as well as a composite switcher the size you need... KEEP IN MIND FUTURE UPGRADABILITY!
~~~~~~~~~~~~~~WIRING~~~~~~~~~~~~~
Traditional wiring uses coaxial cable (same stuff you were using!) for video distribution. Component = 3 runs of coax per location. Composite = 1 run of coax per location. So, if you want component, composite, and perhaps a 'cable feed' into each room, that would be 5 runs of RG6 coax into each room. If you are paying for all the labor on this, then things will get pricey fairly quickly. 'Custom built' component cables are just some form of coaxial cable terminated with ends so the average user doesn't have to terminate the cables themself. It is easy enough for you to terminate cables how you want to.
Solution 2 - Welcome to the CAT5 World!
While I am not sure of the quality and issues with other companies, I know Crestron offers a video switcher that has 16 inputs and 16 outpus. The connections are all CAT-5 and all the wiring to all the rooms is over a single piece of CAT-5. Any single room can receive composite, s-video, or component over that single piece of CAT-5 at any time. So, the need for multiple switchers and a lot of RG-6 cable (and the labor involved in pulling it all) is eliminated. This is not an inexpensive product (PVID 8x3 or 8x4), but the price drop in cabling labor & cost is very significant. Keep in mind, this also requires some Crestron system programming and Crestron remotes to make it all work perfectly. So, it is very technical from a do-it-yourselfer point of view. The final result, as I understand it, has worked very well and one fo the nicer aspects is that regular CAT-5e cable from Home Depot (or anywhere) works just fine for the distribution.
As said, this will require hours of experienced planning and labor just to get it properly designed - then more for programming. But, it produces excellent results and a top-end system if your budget allows.
BOTH ways are acceptable and work fine to maintain the highest level of video quality throughout your system. Perhaps the most common way to distribute video (with audio as well!) is to bring it to the lowest common factor. RF. You take each device, the sat boxes, DVDs, VCRs, etc. then you hook them each to a modulator and put each on a TV channel. Then, you run one piece of RG-6 to each room, and you turn the TV on to the channel of the device you want to watch. Want Sat 1? That's on channel 28 - Sat 2 is on channel 29 - DVD on channel 30.
The downside is that RF modulated video is far lower in quality than even regular composite video and HDTV is out of the question.
There may be some other new products and ideas from others that I don't know of, and I would love to hear about them as well, but the 2 primary ways are what I have been using for years and as far as I know the first option is still standard, while option 2 is beginning to gain in popularity.