how to establish rf communication btw two arduino boards\

Here's the problem then:

"use hr-1001 without shorting any pins at a baudrate of 1200"

yet you have VirtualWire set up for a different speed:

vw_setup(2000); // Bits per sec

They need to be set to agree.

This line
Serial.begin(1200); // Debugging only
only sets the comms via the USB port to your PC (which uses the serial D0/D1 lines).