It's probably not related, but those old v1 extenders cannot handle HD, they are SD only. Even if you get the extender connecting properly I'm not sure if it will downscale your now HD signal to SD or if it will just not even try.
An Xbox 360 will work with MCE2005, and handle HD signals just fine. But they are as loud as jet engines...
Win7 Ultimate RTM x86 | AMD64X2 3600+ | 3Gb Ram | 1.8Tb HDD | ATI4650 | Hauppauge PVR150 - Virgin Media cable | Pinnacle 3010ix - Freeview DVB-T | Pig ugly big black case | Xbox 360 wired extender