The collected works of winchester

I think the problem is with your config files, not the stones. The "NTSCDefault" and "PALDefault" refer to partitions on the framestore for NTSC and PAL, respectively. If you open /usr/discreet/effect_6.1.2/cfg/pal.cfg or ntsc.cfg you may find a framestore config in there looking something like:

FrameStore stonefs "NTSCDefault"

If the NTSCDefault partition does not exist, this will give you problems. The fact that you see a message like: (NTSCDefault :non-existent) does indicate that.

The reason you still see the Happy_Meal project might be because the project.rdb file still has a reference to the project. Project.rdb is the project database, you can edit it with jot/nmap.
IIRC, SimOs was specifically for IRIX 5.3 and it could very well be that the kernel had to be modified as well. I have the SimOS stuff on my computer as a leftover from a research project a couple years ago, and I should dig out the research notes from that time to be exact.

I have entered into a non-commercial license agreement with Stanford for SimOs, and I have just reveiwed that to see in how far I can share anything. The license doesn't specifically mention distribution, only use, so I feel I can't share this. (Sorry)

edit:
If it is running virtualised IRIX you are after, why not start a nice little open source project starting off with Virtual Box sources?