What is best set-up and location for modem/router

Can someone please help me figure out an appropriate set-up. I’m moving to a new house with new provider, etc, and will wire the house for Ethernet which I haven’t done before. Currently I'm at old house just on Wi-Fi, with a few things plugged into the Fios modem/router/combo. I'm not tech savvy, but have been reading up trying to figure this out.

I am planning on purchasing the following equipment:
• Modem: ARRIS / Motorola SurfBoard SB6141
• Router: Netgear Wireless Router - N600 Dual Band Gigabit
• Switch(es): TBD

What I do not know is:
1. Where would be the best place to set up the router. Considerations are in red on pics (family room or media room closet)
2. Best configuration in terms of adding a switch – in both places I’m considering the router I wanted 3-4 ethernet ports (I only need a couple right now at each spot…3-4 was just leaving room for growth). Since the router has 4 ports I assume I can just use one of those for the switch which will cable the rest of the house, and the remaining 3 can be left available for that particular room without doing anything else, right? Or is that a bad idea.

Why I do not know where to put the modem/router/
From a setup standpoint, the media closet upstairs makes some sense – equipment is out of sight, and I think Ethernet is easily run to three nearby locations.

But, my main thing is I want a good wi-fi signal in a few places in particular: Family room and downstairs bedroom (most important two places), patio, kitchen area, upstairs game room. I worry having the router in the upstairs media closet will result in a poor signal most of those places. It has to go through a couple walls just to get to the rest of the house. Seems to me based on this router should be in family room’s entertainment center.
Both potential spots are on the edge of the house – unfortunately there really isn’t an available location in the middle. I have a feeling a wireless internet extender will be needed…we will see.

Legend for pics:
Red ovals: Potential Modem/Router locations, and places where Ethernet ports are needed
Yellow ovals: Places I wanted to add Ethernet connections
Blue clouds: Where wi-fi will primarily be used and important

On Pic below left side is downstairs while upstairs is on right.
http://i61.tinypic.com/a1ms2d.jpg

Thanks for your help.