I tried your dll and it works fine.
Make sure you use the files in the .inFX1_1Debug directory and that you select Position Adjuster in the HookTester.
To be able to always build for .NET 1.1, I suggest that you remove the Condition=" ‘$(BuildingInsideVisualStudio)’ == ‘’ AND ‘$(TargetFX1_1)’==‘true’" conditions in the csproj file.
I have even been able to upgrade your project to VS2008.
Note that if you do so, you have to edit the first line in the csproj file to:
*_