Your definately on the right track with 1" lines. The larger the diameter, the more capacity (storage). It will also have the least pressure drop. I would use the 1" right up to the air fitting. Why restrict it? If the piping in the wall, come out with a short nipple, and T it vertically. The lower leg of the T should have a 6" min. nipple and a valve to drain the leg. Come out the top of the T with a Street Ell, and then a bushing to reduce to your air fitting. IF you were to have your 1st and 2nd floor fittings directly above/below each other, you could eliminate the Ell and use a T in its place. You also would only need to drain the lower leg, as the moisture would not make it up the pipe.
Line dryers should be away from the compressor to be effective.
Regulators can be at the compressor
Oilers should be after the dryer
You can put outlets as close as you want. Each one costs money , though !