Can their hardware also be in the basement with a coax and cat5e running up from it? Or does their termination hardware need to be "visible" to the end user?
Sorry for the delay, was ill.
Erm, yeah, that would be the best bet, that way your not touching VM's cables.
One thing to know is are you getting the TV Package, or is it just for the broadband?
Actually that wouldn't be an issue at all, the Tivo Box has an Ethernet connection, so yeah connect the VM Router/Modem in the basement, and run a CAT5e or Cat6 from their to up stairs to all your Tivo's if you have any and your LAN.
That should work.