Yes, it is a problem with "loop in" wiring. My wife has a habit of buying fancy light fittings to replace the pendant fitting which are designed for this type of wiring.
From looking at the original fitting i am guessing that User76 has identified what should go where in terms of live and neutral, the problem is how to achieve it in practice.
I have used the circular 4-way connector boxes (available B&Q etc), but you need to be able to cut a hole big enough to push it into the ceiling void, the new fitting needs to be big enough to cover this hole.
Alternatively get a sparky in.