The extension added by Sky might have wire running around the outside, but that's only for the convenience of not having to go through various rooms in the house, at a guess (in a bungalow, it is sometimes easier to go up into the loft and down in the lounge, but then again there's the risk of the chap putting his size 12 through a ceiling if he misses a joist)!
That does sound like a candidate, though of course with Sky they expect you to have the box plugged in 24x7. If I were you I'd look for the socket where the extension has been plugged in by Sky - it should be removable else they are messing with the BT side (I won't try to explain right now what implications that would have). Anyway, it should be possible to just unplug the link to where the Sky box is, if only for a few days, so you can see if your speed increases.
I'd suggest checking your speed on ThinkBroadband.com (in the upper right of the page it says 'Broadband Speed Test' on the third box down.
Do that before unplugging the extension, and an hour or two after unplugging the extension, but keep a note of what each report says (and jot down that the second is with the Sky extension unplugged).
Did AOL supply you with a router or did you choose your own? It would be an idea to 'login' on your router and check the speed of the connection on that, too, before and after. If you don't know how to find the connection speed, there's information on the www.Kitz.co.uk website, but I'll try to help too.
When the extension is unplugged, you might initially get absolutely no change in either the ThinkBroadband speed test, or the connection speed reported by the router.
That's because (with luck) your ADSL will have stayed connected while you unplugged the extension.
Once you have been able to see the connection speed on the router, you'll be in a better position to know if unplugging the Sky extension makes a difference.
Unfortunately, and this is where we need to get a bit technical, the network links from back to AOL may have set low data rate limits for now, because it makes the network (and your connection) more reliable if data only reaches your exchange at a speed your modem can cope with.