Right, here is the first draft of the schematic:

It looks right and the design used for the PGA2311 is from the datasheet. I do have some questions though... I'm more of a digital guy and am not that good with analogue electronics.
First, about the analogue and digital grounds. The datasheet says just connect them. Is that the best option or should there be some kind of filtering between them?
On the subject of filtering, I used the RC filter example from the datasheet. I believe an RC filter is best for audio, but would love some comments or suggestions. In particular, I just copied the example values for the resistor and cap from the datasheet...
Finally, a request for comments regarding the interface. Currently I have a rotary encoder and a switch. The rotary encoder controls volume manually, and the switch changes between set volume and pass-thru mode (unity gain). Holding the switch down toggles the volume limiter on and off (limits the maximum gain because it goes up to 37dB!). How does that sound? Any other features I should add?
I am also considering moving to an LCD display instead of LEDs, because LCDs use a lot less power and would be ideal for battery operation. I learnt from Clive Sinclair's mistakes

This would also free up some I/O and allow an IR receiver to be connected for remote control.
The problem I am having is finding suitably small LCDs. The smallest seem to be about 35mm high, which is enough for two rows of characters. I only really need one row, but 8x1 LCDs always seem to be 35mm high anyway. The smallest I have found is 32mm, but for portability I really want to get down to 25mm or less. Anyone know any such LCDs?