CAT 5/5e compatibility

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I am a process of elimination in identifying a problem with some wiring that
I just completed that connects one room to another in my residence. As it
is, the router and internet connectivity is managed/housed in one room, and
to get to the other room, a networking cable will need to connect to a
wall-jack, then connect through the wiring under the house to the wall-jack
in the other room, and then finally connect from that wall-jack to the
computer. That's three wires total.

For some reason, the connectivity is not working out right; the computer
states "Aquiring Networ Address," but never accomplishes the task. One thing
I noticed is that, while the middle-wire that goes under the house is a CAT
5e cable, the cables on both ends are currently CAT 5 cables. Is this the
problem?

Are CAT 5 cables upward compatible? Are CAT 5e cables downward compatible?
Can you process both (CAT 5 to CAT 5e to CAT 5) in a single line of
communication?

--
-Zakhary
.

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