I am switching from Dish to DirecTV. My Dish 722 modulated the 1st and 2nd tuner output that was distributed throughout my house. I have several wall mounted TVs that only require Coax to be able to pick up SD signals (SD is sufficient for these TVs). I'd like to do something similar (so that I don't need to have receivers for infrequently used TVs) and my understanding based on reading various posts on this forum is the way I'll need to do that is as follows:

1) Connect component output of HR34 to a Component to Composite converter. This will avoid the issue of the HR34 wanting to switch to SD if I use a non-HD capable ouput on the HR34

2) Modulate the Composite signal (ideally to UHF frequency for longer runs)

3) Diplex the modulated signal into the coax line (can I diplex into the same cable that goes into the HR34 to send the signal back to the main coax junction area in my home?) using an SWM compatible diplexer

4) Use SWM compatible splitters either at the main junction point of my coax cables for locations that only require the modulated signal or at each end point (HD Receivers as well as Coax only TVs for the modulated channel)

I have a few questions:

1) Is the way I described the above "correct"? Can I diplex the signal through the cable that runs to the HR34?
2) Is there an easier way to accomplish this?
3) Does it make a difference if DirecTV installs a SWM LNB / SWM ODU or a SWM 8 (I only plan to have the HR34 and up to 3 HD receivers)? Not sure if the SWM 8 would allow me to use the built in OTA diplexer and if that would be preferable
4) Does doing the above compromise the whole home DVR? If so, is there another way to do this without completely separating the modulated COAX signal to an isolated set of connections without diplexing?