You're right about the center/bass. The 2 channels on that jack are for the center speaker, and the subwoofer. Usually you can swap the two with the sound drivers, however, I believe that the tip channel is the center speaker by default.
For the cable, all grounds are common. So for 7.1, you will need 8 signal conductors, and 1 ground. A shield would also be a good idea, since this signal needs to be fed into an amplifier. If the amplifier can be close to the PC, this helps a lot.
I made a cable for 5.1 using an ethernet cable. (8 conductor) I use 6 lines for signal, and 2 for ground. The 2 are tied together, and since they're earthed at the amplifier end, they double as a shield. It works reasonably well, I don't get much noise from the speakers, though it's not perfect. It was, however, cheap and effective. It extends the speaker jacks by a good 15 feet. Given that, you could make an adapter using a 9 pin serial cable to extend your 7.1 sound to your amplifier. If you get a good serial cable, it should already be shielded, at lest well enough for analog audio.
For the amplifier, I guess it depends on your tastes in power. You could use a series of cheap stereo receivers, second hand, eBay or whatever. You set the volume once to get the sound balance that you want, then the master volume control ccomes from the PC. Each receiver can then deal with 2 speakers, so you'd use one stereo set for front, one for side, and one for rear. Center/subwoofer would be a bit trickier, but if the receiver has a set of A/B speakers you could connect the sub to the "A" speakers, which usually have more power, and the center channel to the "B" speaker. Use the balance control to fine-tune the relation between the center channel and the sub. Okay, so you'd have 4 receivers piled up, but it's probably still cheaper than the cheapest 7.1 receiver out there which can take discrete analogue inputs. Of course companies like Logitech make speaker sets that work for exactly this purpose, but if the idea is for DIY speakers, then you need amplifiers.
You can also visit places like
Elliot Sound Productions for building your own set of DIY amplifiers, but the cheap receivers is probably less expensive, and faster. (Even if you build your own amps, the PSUs and heat sinks in the cheap receivers can be very handy.)
For speakers, I've never been a fan of the standard MTM (Mid - Tweeter - Mid) center channel, but it does work well for a lot of people, and does tend to fit well under or over a screen. There are many ways to make a speaker enclosure, and it will depend on what kind of sound you like.