Don't you just HATE pop-outs? They never fit what you want. And now with LCD TV's it's really a mess. Here's the solution. What made this job tough was the fireplace vent was running right up between the two recesses.
This crack had  been repaired just a few weeks early by another "handyman". His method was to caulk over the crack and then paint. My repair was a little more extensive. Be sure to check out the texture matching in the other pic's. The repair was virtually undetectable when finished.