You will essentially need two of the kits, with a total of 2 pairs (4 cables) of Cat5e cables routed between the rooms. Where you intend to place the source devices (Decoder, Media Player, etc.) is entirely up to you, but it may be more sensible to place the source devices where your AVR is so you can also output the sound to both HDTV through the HDMI cable and AVR through Coax or Optical cables. Either way, you will be able to experience the exact same picture quality, with full control of your source devices from either room with 2 of these kits. Switching between them will only involve switching inputs on the respective HDTVs.