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How can I split internet from source (RJ11) in 'room 1' to 'room 2'?
I imagine the cables to run like this:
'room 1' RJ11 to modem/router - to female RJ45 (mounting plate on wall in 'room 1' cabled to 'room 2' through the walls and then to another female RJ45 mounting plate on wall) and then connecting computer to this mounting plate.
Would this work? Would there be any signal quality or speed loss in the connection as the network cable from the modem/router would have an additional two patches of cable to go through before finally reaching the second computer.
Thanks 
Theoretically, you setup it perfectly. Did you test it? It suppose to be working fine. The only problem is room 2. Most likely, it will not able to connect to the internet until you change the network gateway (for PC in room 2) with PC room 1's IP Address. To be safe, sitting on PC room 1, please enable the Internet Connection Sharing (ICS) on the machine as well.
Every time you want PC room 2 wants to connect to the internet, PC room 1 must be online as first then PC room 2 will be able to surf the net.
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