You'll need to plug the Xbox into the Plasma on each one!!!
There your done..........Unless you want the opportunity to watch each box on both TV's but that would be overkill.....With people sitting in front of both at one time the 2 Tv's playing the same thing would be confusing at best.
Honestly it sounds too easy, but the split screen in the boxes does the work when you select 2 players it goes split screen, and when you choose 4 players it goes quad screen..........
Make sure you have 4 controllers (the wireless logitech work great) for each box for a total of eight controllers.........
Also make sure you have a cat5 for each box back to the network... This allows each box to access Xbox live as well as the other box for head to head play.....
Its not rocket science on this one.......
If you were to use the recommendation of the matrix switcher that would require 8 xbox360's and that would be ridiculous.....
Take care to vent the 360's as they run very hot.........if you mount them in a rack get a Zfan or other fan to help them stay cool and the games will not crash after overheating the box....
Have fun and make sure you leave time to TEST these when your done.......The 360 has graphics that are incredible.........