Cheapest way to get from Soho to Gatwick airport by 05:30am
In general, the cheapest way to get to Gatwick is by bus, not train. In the case of Heathrow the tube is mostly going to be the cheapest, but a bus shouldn't cost much different. So for Gatwick it reduces to finding out whether buses run at this time.
http://www.gatwickairport.com/to-and-from/by-coach-or-bus/
I leave you to research the bus timetables of the various operators, and where in London they arrive at.
Is Gatwick express my best bet?
Thameslink trains also run at night to Gatwick. So you could take a train from either Blackfriars or St Pancras (the former is a less scary station), and it would also be cheaper than Gatwick Express. But probably not cheaper than the bus, though it is always difficult to be definitive about these things given how cheap fares for advance booking vary so much. However check the precise date, there can be engineering works preventing this journey, for example at the weekend. Gatwick express can also be closed due to engineering works some days, so use nationalrail.co.uk for your precise date of travel, and check again nearer the time.
Cheapest method to get to Victoria station from Soho
Walk is cheap and practical if your bag is not so heavy and you really are trying to save every last pound, though probably takes best part of an hour. Otherwise cheapest is night buses. (Note that you can't pay by cash for a local London bus, you have to get an Oyster Card. This is also the best way to pay for the tube to/from Heathrow. Research tourist Oyster cards on the tfl website.) Go to a bus stop and you will probably see the night bus network maps etc, or check online. But on Friday and Saturday nights, some underground trains run all night, and that may be more convenient/reliable given precise arrival times may be involved.
3) Does it make more economical sense to: a)go from Gatwick to Soho, sleep a few hours (25 quid), then Soho to Heathrow? OR b) go straight from Gatwick to Heathrow and sleep at a Yostel (70 quid) in the airport
Option a should be about £20 cheaper, at least, if you are careful over your routing. But will involve you in a lot of arranging.
I am seeing conflicting fare prices from Soho to Heathrow (seeing as low as 6 quid to 35 quid. Very confused on this)
£6 is probably the tube. Other things can cost all sorts of prices depending upon routing, when you book, etc.

