That cable will do perfectly. Everyone has different methods. I posted mine using that exact same cable a few weeks ago, here it is again.
I use a razor, xacto knife or other sharp blade to cut off the outer black PVC insulation. Then you find the copper shielding. Loosen the ends by pushing them in and out a bit, then you can just put it to slide it off. You'll be left with the twisted wires covered in a paper-like wrapping with little cloth strands inside. I prefer to leave it on.
I then take a small piece of electrical tape and put it over each end to hold the paper wrapping in place. I try to make it a small piece that goes around only once, and I stretch it while I do. That way it doesn't add much to the overall diameter of the cable for when I go to sleeve it.
http://www.supplycaptain.com/index.cfm?category=6 is a good source of paracord. You can also get it off normal sites like Amazon (usually from sellers like the supply captain) and also at hobby shops like hobby lobby. The 550 at supplycaptain is just the right diameter to fit over the cabling. Measure out enough to cover plus about 1 foot extra. Make sure to flame the ends so they don't fray. A lighter or small torch is handy. I like the small torch for precision personally but it isn't important.
Now it's time to sleeve. Begin by sliding one end into the paracord. You'll probably be able to push it in 4 inches before it stops. Then you'll use the "worm" method to inches it along. This involves holding both sides, then using your thumb and index finger to push the cable a little deeper into the paracord. Then you pull the cable side of the paracord tight on the cable. You keep doing that over and over. With a little practice it'll become very easy. Turn on a show/anime/movie whatever and start sleeving. I like to stop and pull the already sleeved part a tight by running my fingers along it.Takes about 30 minutes for about 6ft. I don't fully tightening the paracord to the cable because I want a little slack, just a little. Cut off the access paracord remember to flame to avoid fray.. I try to cut so that I only have about 1 inch of unsleeved cable on each end.
Hard part is done, now it's just about paying attention and proper labeling.
There are 4 wires. Label 2 wires for ground and two for your signal. Since they are all a different color, just make sure to write it down on a post-it and you won't have to label.
1 wire for left signal, 1 for right signal, and two for ground.
Use your wirestrippers to take about 4mm or 1/8th inch off the end of each wire depends on the connector you plan on using. The connectors usually have good instructions for what works best for them. I usually start working on one side before the other. Tin the tips of the stripped wires with a little bit of solder. That will make it easier to solder to the connector when the time comes as it will heat faster. Go ahead and solder the wires in their proper places, making note of what wires went where. I then like to clean my connector by removing any flux residue. Look at your solder to see what is best. Some are water-soluble while others require something like rubbing alcohol. Sometimes scraping a little with the razor can help remove excess flux left-over. Remember to let it fully try before closing/using. If you are using Neutrik-style connectors, I like to put the paracord in the clamp and place a piece of heatshrink over it to make sure it holds. Slide the connector shell over from the back and screw it in. If you want heatshrink over the connector, go ahead. You're done with that side.
***Now before starting the opposite side, make you put on the cable whatever needs to be there before soldering. This means you need to place the connector shell on there, a piece of heatshrink, and anything else that won't be able to be put on once soldered. No matter how many cables we make, this happens occasionally.
Repeat the same steps of tinning the wire, soldering, cleaning. ***Before placing the heatshrink or connector shell, take a multimeter and make sure the connections are correct and working. You can also plug it in and listen to an left/right channel audio check to make sure everything is correct. Once everything is dry and done, close it up.
You're done. Enjoy the cable and the experience you've gained.
Again, this is just how I do it. There are many other ways and methods. Find what works for you. Surely I've left out some minor details in my rush to write this so please forgive me and feel free to correct/add.
As I just explained, the wires are just colored for easy identification. You can use any of them for anything. Some people just like to use certain colors to stick to a standard so others can easily recognize what wires are going where.
This is exactly what I was looking for, I really appreciate your time and effort in helping me. I'm sure I'll have questions along the way tho