Actually, I figured out how to do some of it...
Using Cidero, Tversity and Windows Media, I was able to route the audio (video works too but obviously the TV needs to be on in this case;)) to my home stereo.
Simply allowing media sharing in Windows Media I was able to control the streaming from Windows Media, Tversity or Dlink servers with Cidero. I guess iTunes does not have a server so I can't use my iTunes playlists. Also, I can't directly re-stream audio from the internet (ie., internet radio) to my home stereo. I must process the feed through Tversity.
Not the most elegant solution but it works. Anyone have suggestions for improvement?