Best setup for wired network?

I live in a very small flat and the router is in the hall, currently as there is no plug socket next to the phone line I have the wire over the floor, then 3 wires going into the living room for my main desktop, my old 360 and my sattelite box, I then have a 4th wire going into my bedroom where I have a 2nd router just for connecting to my bedroom sky box, my XBMC xbox and my bedroom pc

I was thinking or instead of having thick wires going through the living room since I have wooden flooring, to just put the 2nd router in the living room next to where the 3 devices are(next to each other) then 3 short wires to the boxes that way there is only 1 wire noticable and the ones in bedroom can hide behind the desk and wardrobe next to door.

Is this the best method?

The 'best method' is particular to each setup and house layout really. My own experiences:

In one property, the master socket was moved from the hall to the living room, under the desk therein. In another, I ran a cable along skirting from hall to bedroom.

In my current house, I have a master face plate, with a filtered CAT6 cable run inside the wall, through the loft, and down to another faceplate in a bedroom.

Here's my logic. If I am to have a mix of cables in the run, I'd rather have the higher spec cable on the long run, and have the lower, CAT5 cable doing the 1-2 metre stuff.

In reply to a post by mittenkrust:

I live in a very small flat and the router is in the hall, currently as there is no plug socket next to the phone line I have the wire over the floor, then 3 wires going into the living room for my main desktop, my old 360 and my sattelite box, I then have a 4th wire going into my bedroom where I have a 2nd router just for connecting to my bedroom sky box, my XBMC xbox and my bedroom pc

I was thinking or instead of having thick wires going through the living room since I have wooden flooring, to just put the 2nd router in the living room next to where the 3 devices are(next to each other) then 3 short wires to the boxes that way there is only 1 wire noticable and the ones in bedroom can hide behind the desk and wardrobe next to door.

Is this the best method?

Yes - perfectly fine. Use a network switch instead of a router to save complications. They can be had for £10 or less. If you are determined to use the second router as a network switch then ensure you have disabled the DHCP server on it.

Don't worry about using CAT6 as suggested here. CAT5e carries gigabit to 90mtrs without any problems.