What type of speakers are you planning to run in the dining room / living room / kitchen? And what sort of volumes do you plan to be running the system at? Will there be parties where every speaker will be up and running at a decent volume level? Oh, and who gave you the advice?
Okay - having Google'd your speakers, I do not believe you require a 2 channel power amp whatsoever. The speakers you're looking to run in zone 2 are small, easy to drive and probably won't tax your SR5007 at all. Just run speaker cable out of the zone 2 speaker ports into the SS4 speaker switch, then split to your speakers from there. Unless... you're running a BIG set of speakers in the main zone. Are you?
In regards to volume controls, the Niles units are sweet. The SS4 is an okay speaker selector, however its impedance matching is defeateable if you were to crank it for hours on end (with big speakers). I'd look at the next level up if you can, and leave the volume controls set to full, while still using your in-wall volume controls to adjust volume in the separate rooms. http://www.nilesaudio.com/product.php?prodID=SSVC-4&recordID=Speaker%20Selectors%20with%20Volume%20Controls&categoryID=Speaker%20Selectors&catcdID=7&prdcdID=FG01043
So your last sentence in the first paragraph is the key. I haven't given you all the details. I am going to use Zone 1 from my AV Receiver to power speakers in my Basement. At this moment I have not idea what I am going to get but most probable some good standing speakers. So with this fact, do you still believe that I do not require a 2 channel power amp?
If the amplifier is required? what do you suggest?
Regarding the speaker selector you are recommending the SSVC-4. Also you recommend leaving the volume controls of the speaker selector to max and have the wall volume controls doing the adjustments. Correct? I am still going to be able to shut pair of speakers with this speaker selector. Correct?
Thanks again for all the recommendation and feedback. I might need more of your help as I start implementing my system.