Got something like this over a year ago from Argos for less than £30.
http://www.argos.co.uk/static/Produc...er/5344273.htm
We use it to send the Sky signal from our living room to our small 17" TV in the bedroom upstairs. Picture and sound is good enough for our needs, but there is a tiny bit of interference though.
We bought a 2nd Sky remote so that we can change channels upstairs.
We don't have Freeview as we don't have an aeriel connected in our property, but can't see why you can't watch Freeview in one room, and Sky in the other.