This is the typical sequence we follow for most installations where a flat panel TV is mounted above a fire place.

Step 1:  This was the existing setup of the room.  We discussed new installation options with the homeowner and made a game plan.  We decided to install all the components in the bottom half of the niche, and the new flat panel TV would be installed above the fire place.  

Step 2:  We cut all necessary holes, installed all the wiring, and mounted the TV bracket.  We also extended the existing cable TV wire to reach the bottom of the niche.

Step 3:  Finally, we patch all the holes and texture the patch to match the wall.  The patch here is still wet, so it can be clearly seen on the top half of the niche.  When it is painted, it will be nearly invisible.  As soon as the patch work is done, we connect all the components and install the TV.