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aggi
That box turns the HDMI signal into (roughly) a Freeview HD signal, which means the TV in every room needs to have a Freeview HD receiver.
Also, depending on how your coax is wired and whether there are amplifiers involved, you might not be able to feed a signal into the system from the living room socket (i.e. it needs to come through the loft or whatever).
I'd skip the coax and just get generic wireless HDMI boxes, which will be cheaper and much less faff. How many rooms are we talking about?
I have vague memories that Sky boxes can output a second non-HD TV channel over the RF output.