Well, there is a trick to the shorting contacts that you refer to Ernie, if you termintate one of the tips with a resistor, it will eliminate that distortion. A company called Audioplex Technology makes a "y" that has this built in. It's called the 'Buffy'

I would definatly go with another receiver AT LEAST for the whole house distribution. I don't think there is a better alternative to this as the others have discussed. Just BE SURE to have the correct impedance reflected to your amp or you'll let the smoke out. Everyone knows once you let the smoke out, it won't work anymore. 'Cause all electronics run on smoke...

Just thought I'd throw in my 2 cents...