You could extend the wires just make sure you color code the new ends of the wire with the same color your connecting too. Or use the same color wire as your extending. It makes no difference which side of the fuse you connect to. Just make sure your not connecting to fuse smaller in rating than what is required for the camera. Too much load on a fuse, it may blow the fuse.
As for the red and yellow wires, red is for a switched power source and the yellow is for the constant on or battery source. Double check your instructions to make sure I'm informing you correctly. Black for sure, is your ground.
One more thing, when you extend the wires, try to use the same size or a little larger wire.
Hope this helps.