As the original author of the Dinosaurs and Ancient Lands readers I can say that there were definitely SA compatible versions of both of them, however it's probable that v1.00 wasn't. Presumably McSpoons has the later one so it works. They were never re-built to be 32bit, though.
The reason the instructions say you need to keep the original !Runimage is because it embeds the registered name in it... with the expanded one it won't be able to check that you've registered.
I'm not sure why you're getting jerky video, because the cinepak decompressor was pretty simplistic (it's not doing any heavy processing) and as far as I remember it worked on anything from an A3010 up. The only problem that I saw that was similar was due to CDFS not being very good at caching reads - I think the only reader we had a problem with at the time was Kiyeko but we included a cut-down version of CDFast to solve it. Maybe you're getting a similar problem with the Kinetic card?
And finally, the problem with TWTW. The DK readers (eg PB Bear, TWTW) were a different codebase from the MS Home (Dino etc) ones and I didn't really have much involvement with them. What I would say is I expect there are some SA compatible ones around but again these would be later versions (not 1.00).