I think you can use composite long distance, but having to run independent cables for video and audio (3 total for stereo, 2 for mono) is more work... you did mean composite and not component, right... which would be 3 for video and 2 for stereo or 1 for mono or digital over coax. Both composite and component can be done, but you start getting more and more $$$ as you increase signal quality.
- Modulated over NTSC channels is the cheapest - you TV is the switcher (diff channel per source)
- Independant composite AV is more costly and will require a composite AV matrix switcher (so you can send source A to TV 1 & 3, and source B to TV 2 and source C to TV 4 & 5, or any combo you can think of). Matrix switchers are VERy flexible, but expensive.
- Independant component AV is even more costly. You'll still need a matrix swticher, and component matric switchers are REALLY expensive.
- A combination of composite and component - You can have TV1 on a component matrix swticher and TV1&TV2 on a composite matrix switcher. This way you can watch TV1 or TV2 on any set in the house with the option of feeding component to sets that can handle HD.
All of the matrix switching setups get even more expensive, in that you have to figure out a way to control & track all of this, and man will you have a lot of wires running through your walls (though for even more $$$ you can purchase some baluns that will let you run these signals over a few runs of CAT5)!
Unless you sets in your remote rooms are over 40", I don't think you're going to see ANY difference in a modulated NTSC signal vs a composite signal, and you'll be really challenged to see any difference in a modulated NTSC signal vs a component signal at normal viewing distances... especially if the TVs are CRTs or plasmas... Now if they're LCD/DLP/LCoS based, and/or over 40", and/or you sit really close to the screen, then you may see a difference.
The parts express modulators I use are rather inexpensive. I think $99 for a 3-channel mono modulator. You can get nicer, stereo modulators that also do the IR injection/coupling for you for a lot more ($300+) with the same capabilities.
Unless you have to have stereo on the remote sets, it's cheaper to by the cheap 3-channel mod and seperate IR injectors/couplers, than it is to by the all-in-one unit. However, if you want stereo, then get the all-in-one. I think Parts Express sells all types.