There is a PowerCinema Free Upgrade here:
http://www.cyberlink.com/cinema/ati/3/free-upgrade.jsp
Not really sure if it is applicable to your version but some of the features include:
Supports scheduled recording from GuidePlus+.
Supports auto launch in order to record a program, as long as the user is logged in.
Supports adding favorite stations for weak FM signals
Supports setting the location for recorded TV files.
Supports deleting radio recordings from PowerCinema
Supports Spanish language.
As for the side note question, in MCE 2K5 go to settings > TV > Recorder > Recorder Storage. Then go to Recording Quality: and select from the predefined settings “best, better, good and fair.