I doubt you could just include the SWF in a Kinoma movie and it will behave as you intend.
To my knowledge, Kinoma can only play non interactive Flash 4 animation. Kinoma only uses SWF for animation not for interactivity. I believe you can control playback of the Flash animation track from Kinoma's built-in scripting language.
You may have to rebuild the menu using Kinoma scripting language in iShell authoring environment.
I can test your menu on my Sony CLIE TH-55 if you want to see how it works for CLIEs with a true flash player.