Thanks for all the help. This has really helped me understand what is going on with the circuit.
Alright so after additional research today I have a different path that I would like to take. Hope you can help!
Apparently a lot of the features are current not being used in the PCA9547D and thus I have reduced it down to a simpler circuit.
PCA9540B 2-channel I2C-bus multiplexer
PCA9540D.pdf
Currently two HMC5883 sensors are hooked up to an Arduino I2C bus, but have fixed addresses and thus require a multiplexer.
Here is my new idea:
Both sensors have the same clock rate and was wondering could those clock lines be combined because they both share the same frequency and are being read at separate times?
If so this would simplify the multiplexer into something along the lines of using a few digital logic gates (DIP Package)to switch between the address lines of the two sensors. I can see a few problems which I am looking into... the logic gates would have to wait for a LOW or HIGH signal from the Arduino and would need to switch at a high speed. They would also need to be bi-directional logic gates (If those exist).