There are two things that come to mind.  First of all it isn't an HD TV - which is  isn't. 
Even if it could work in conventional mode(s), it does not have HDCP (a kind of copy protection) which the Sky box requires and so I think that you have had it.  
In other words to watch Sky HD you need a new (HD) TV.
                
 T
                
 March 2009