The TV has one digital optical (we can abbreviate as OPT) output, two
component inputs (we'll call III and IV), and one DVI input (we'll
call V, because it is Input #5).

DVR has Digital Optical, DVI, and one component output.

Wii has component output, no optical output.

XBox360 and PS3, both with component output, Digital Optical Out.

The stereo has only one digital optical input, plus COAX.

Maybe we will get a dedicated DVD player, which could either run a
COAX or digital output, but will be running component output.

To add more capacity, I bought a switching device which adds four
component inputs w/ digital optical, and switches between them to one
component and digital optical output.

Let's assume that a feedback loop can be created if we're not careful
with our routing, and that optical sound is selected over standard
sound, which would matter if the Wii is hooked up to the switcher and
its digital optical is being used by something that's on.

I've thought this through, but want a second opinion to setting this
up., working with what's available. HDMI is not an option, and I heard
I'd have more headaches if I ran out of inputs anyway. Any thoughts?

________
XBX COM|>------------+
    OPT|             |
_______|             |
                     |
________             |
PS3 COM|>----------+ |
    OPT|           | |
_______|           | |
                   | |   _____________         _________
________           | |   |     S     |         |     ST|
DVR OPT|           | +-->|COM1 W  OPT|>------->|OPT    |
    DVI|>---+      +---->|COM2 I     |         |COX    |
    COM|    |   +------->|COM3 T     |         |_______|
_______|    |   | +----->|COM4 C     |
            |   | |      |     H     |
________    |   | |  +-->|OPT     COM|>---+
Wii COM|>---|---+ |  |   |___________|    |    _________
_______|    |     |  |                    |    |     TV|
            |     |  +--------------------|---<|OPT    |
________    |     |                       +--->|COM1   |
DVD COM|>---|-----+                           >|COM2   |
    OPT|    +--------------------------------->|DVI    |
    COX|                                       |_______|
_______|

Switcher leads to the stereo
1. TV OPT
2. DVR OPT
3. PS3 component & OPT
4. XBox360 comp & OPT

Just seems like a waste to have leftover component inputs.

Thanks.