Is it possible you switched OSD to off in the 1070 setup?
You say you have a new plasma TV. Have you checked the settings for it to make sure you are on the same input as the cable composite connection to the 1070. I use HDMI directly from my BDP-83 for video, bypassing the 1070, and I get audio from the TV's tuner by optical connection to the 1070. The only way I get the OSD is by switching to V3, which is where I also put the output from my sms-1. But when I do that, I also have to tell the TV to switch to AV2, where the video output from the 1070 goes.
What really amazes me is that I reran all the cables a few months ago. Since then, as I watched TV, DVDs, and streaming video, listened to the radio and CDs, and (occasionally) slept, all those cables got hopelessly tangled. So when I went to add the sms-1 a couple of weeks ago it was very difficult to follow where everything came from and went to. The system gremlins live.