Script to highlight content between two sheets that match based on column and row headers

This sounds doable, but many of us (myself included) cannot view image posts. Would it be possible to upload a small sample workbook (Use: Go Advanced --> Manage Attachments)?

I have attached it now

You should be able to do this with conditional formatting. If you want Sheet 2 to show the highlighting, select B2:F4, Conditional Format using a formula, and input the following formula:

=AND(B2="x",INDEX(Sheet1!$B$2:$F$4,MATCH($A2,Sheet1!$A$2:$A$4,0),MATCH(B$1,Sheet1!$B$1:$F$1,0))="x")

If you want to highlight on Sheet 1 as well, repeat the process but switch out the sheet names in the formula. I've attached a version with the formatting on sheet 2 to demonstrate. Take a look and let me know if it works for you.