So my install of 2.00b7 was unnessecary. Correct?

No.

The kernel and the player application are separate modules -- but they come as a matched pair.

Mark's Hijack kernel is based on kernel v2.0b7, so you'll need to have loaded the stock v2.0b7 first, otherwise the (older) player (which wasn't upgraded) won't work with the (newer) kernel.