Lots of questions there Yeahman but I will have a go at answering them but I must emphasise this is my opinion and is no way meant to detract from your ideas.
I want to heat it appropriately. soil warming cables come to mind and i'm thinking about 30 foot, 15 foot in sand trays and 15 foot in the soil under the herb garden.
I would forget about heating the herb garden and concentrate 100% of the heat in the propagating area.
will I need a thermostat - or should i just control it manually with a time switch (a lot cheaper)?
I am not sure you are correct in saying its a lot cheaper!
Let me explain;
1) You have better control with a rod stat and in the long term (they last for many years) it could work out cheaper.
2) If using a time switch what is to say you won't have a cold snap when the 'time setting' is at the 'OFF' position?
This may cause you to lose your entire stock and how much will that have cost?
do all soil warming cables have a metal safety core?
I am not sure what you mean here but the cable has an inner copper core surrounded by an armoured pvc sleeve/coating. I think, if my memory serve me correctly, the power is AC rather than DC and this heats up the inner core.
If you buy a kite marked product you should be OK
will this be enough to warm not just the soil but also the air temperature (I'll make sure it's well sealed and covered with blankets at night)?
Not really as you know it is a SOIL warming cable.
Admittedly because hot air rises you will get a degree or two of increased temperature just above soil level (which I think is in your mind)
You could rig up a cover/cloche and position this about 3"-4" above soil level and this should help a little.
If this is not enough to heat it, what's the best solution - parafin heater or heating tubes or maybe a light.
I would use paraffin as a last resort it tends to create lots of condensation. Plus if you do not buy the right type you could kill off your plants.
With a bit of careful planning and insulation I think you might find that you might not need any supplementary heat.
High temperature are only required (generally) for germination purposes, once germinated plants will survive much lower temperatures particularly if you keep them on the dry side.
I have placed a thermometer in a plant pot when the surrounding air temperature was near freezing and the root ball was registering 5° warmer.
I hope that helps with your decision making at the end of the day the choice is yours.
This is how I heat up my greenhouse;
http://tinyurl.com/2fpaov