Just a bit of reporting. First, I got my Non O Visa(based on over 50) recently in Penang without much trouble. I had read from their website that they require Police clearance Report and Medical cert for a Non-O visa. I even rang them and they confirmed they require it. So, I went to BKK to get it. When I applied in Penang Thai Embassy, I asked the officer what he needed from me. They only require the proof of funds in Thailand(800k B), and the usual Passport copy etc and marriage cert for my dependent. No Police record or Medical cert. I got my visa the next day. No hassle at all.
Today, 45 days before my Non-o visa expires, I went to Chiang Mai Immigration at the new premise near the airport to get my 1-year extension expecting a long disorganised queue system but to my surprise, it was very orderly and quick. I went at 7.45am and got my 1-year stamp by 10am. I was glad that it went smoothly and after hearing many complaints of long queues, I was happy to report that it was not so bad after all. Thank you for all your advise and help. Just wanted to share my experience.