Go with 1/2" main-line so you can put sprayers or hose anywhere you want. Also, if you run 1/4" everywhere you may not get enough flow to all the emitters/hose.
Get this for your spigot:
http://www.homedepot.com/h_d1/...
Run this off your waterline and then you have 4 manual zones to work with off the water main.
No you cannot punch a hole in the garden hose and put in emitter. The rubber is too flexible, once you punch a hole it expands when you pressurize the hose and does not seal around the 1/4" barb. Trust me on this and do not ask how I know. You have to run the 1/2" poly tubing main-line and then off that run your emitters or hose.
The thing I have found with garden hose is that it will eventually burst. They can not handle the pressure and will eventually fail. Never had one last more than 2 years before replacing. I have replaced all feed lines with the 1/2" poly tubing mainline from DIG.
