1) You are spending WAY too much for the encoder.
You only need enough inputs to handle the most complicated control panel. Since you don't have any 4 player control panels I would STRONGLY recommend either a keywiz or a ipac and a hacked mouse from oscar. You will save 40-50 bucks I believe and it will not effect you in the least. (You might want to ask Oscar if he can sell a hacked mouse with the 3rd button not cut for ground. Otherwise you will need to hook your trackball controlpanel to the keyboard encoder. Not a huge deal but... I don't know if he can do it.)
Next.
You have to decide how your going to connect them.
Cheapest is hacking 25 pin serial cables. You have to make sure they are pass through cables (all 25 pins go end to end) and not a cheap one that only has the 9 that serial ports use). Then you also buy a bunch of 25pin m/m (or f/f) cables that you cut in 1/2...
You can also do network cables but you have 8 pins per plugin.
But try and stay away from solid core cables. These don't crimp well, especially on control panels that move (when you unplug them).
btw, In the next few weeks I will be posting a solution I plan on selling that will allow you to plug in each control panel without plugging anything in. It works with any keyboard encoder (and tested with an AKI analog -> USB connector). I am going to try this weekend to make one for USB cables so I can plug in any usb device without any cords. But these are still a few months off from taking orders...