Should I be using Arduino transmitter, receiver pair? I found these.
Read the warnings about noise. They are not kidding.
The 500 foot range that they cite. They are kidding. With a professionally designed antenna, properly positioned and connect, absolutely no other electrical activity for miles around, that figure might be possible.
As soon as you start blinking LEDs, forget it. 5 feet is more realistic.
I apologize for linking to another site but couldn't find them here.
Its fine. Arduino does not sell radios.
or would Bluetooth be an option?
Bluetooth range, under ideal conditions, is 10 meters. that's on the low end of your distance range.
In terms of radio use, you really do get what you pay for.