IRDA specs go up to 4 Mbit/sec (not easy mind you), but LOS is a big requirement.
If you can make your own PCB, you can might want to use chips from this company - **broken link removed** . The chips tend to be in the US$4-5 range and are relatively easy to use.
The longshot would be to just use magnetic coupling, RFID style. If you have a stationary unit that is attached to the wall, make a big coil and pulse out a signal. 1M seems to be reasonably close to see something like that. (Mind you the coil is going to eat up a couple watts of power). RFID stuff usually works in 10's of KHz and up...