Got my answer.
1st call to x10 Customer Support, the Support Rep said
"Yes, you can watch one channel in Living room (where cable box and Video sender is hooked up)
and the person in bedroom can watch a different channel , but you will need to use the IR extender in order for this to work"
2nd call to x10 Customer Support, a different Support Rep said
"No, whatever channel is on in the Living room, will be the channel displayed
in the bedroom. Change the channel in the bedroom using the IR Extender, the channel being viewed in the Living room will change.
That is how the system is designed, You can watch a channel or DVD on a non-AV outfitted TV, and the IR Extender just allows you
to control the channels or DVD being watched in the bedroom, without having to get up and go to the other room where the
source is, to change channels and such"
Well that clarified things for me. I misunderstood the features that were advertised for the Video Sender Kit.
So I will return it.
Tying up one TV system (cable, DVD Player...) does me no good.
On another note , I had no problem getting a nice clean,crisp video and audio signal on the receiving TV.
Thanks