It won't do sky Apart from the normal Sky/Freeview differences...
Seriously, on the Pace Twin, you can run the modulator out to other rooms, but you can't do remote control over it, like the sky remote IR receivers. I use Labgear Handilink Pro for this which is much more flexible.
The Pace twin has twin tuners! But the modulated output can come from only one of these. It is user selectable. One of the tuner is for watching live TV, the other for recording. The Live TV tuner supports interactive TV and text, but probably not advanced as sky, the second (recording) tuner does not. Playback of recorded programmes is via the 'tuner 1' circuitry, so this may govern what 'tuner' you want to appear on the modulated output.
This gets worse bye the minute, as you may gather I`am good at turning on tv that`s about as technical as i get so if i list what iwant to do will see what happens.
TV 2 Scarts
Sky box ( which we no longer subscribe to
VCR ( which needs to be replaced
Hence bye pace twin and replace both boxes,
Have interactive on main TV but be able to watch recording or other channel from pace box piped to other rooms
Yes you can do this, but it all depends on where you source the second room feed from. If you source it from in built modulator, then you need to feed it from 'Main TV' side of things to view the played back recordings. This will mean that the second room and main tv will have the same output - this may be a plus or a minus.
Alternatively you can source it from either of the two SCARTS and, if your running via the ariel, remodulate this via an external modulator (approx £20) or an existing VCR. If you source it from the VCR/second tuner SCART socket, (I believe) unless you use the archive functionality, you can't view recorded programs, but you can see it when it is being recorded. Whilst you can select channels on the second tuner, it is used for all scheduled recordings, so it may change outside your control.
You can also combine the two methods, and have 2 channels to choose from on your TV - best of both worlds.