Damn this is really frustrating. I keep messing up between changes and unvoluntary reverts and random guessings... I guess the demo release can't wait for King Zeal... especially since the spriteset is uncomplete anyway (though we don't need to see the King's back and the King's laugh for now).
If someone wants to try the sprite import, here's what should be done (what *should* work hopefully):
1/ Rename 1AA97F_kingzeal.txt to 1AA97F_kingzeal.smc
2/ In Temporal Flux, recompress 1AA97F_kingzeal.smc to address 1AA97F
3/ In a hex editor, go to address 240EE8 and simply enter this sequence of values:
9c 73 3d 32 5d 53 83 08
2f 45 63 14 e7 48 6a 59 27 29 f4 62 c6 10 8a
Sounds simple, but I messed my rom with so much programs opened at once that I think something kept reverting the stuff I did. Hopefully someone else can do it, or just release the demo and I'll see later if something's uncorrect in this method (and I'll finish the rest of the spriteset also).
Your patch process above was fine, but the edited graphics took up too much room to fit back into its original spot. The extra data corrupted the following graphics packet, which I corrected.
I'll type up a tutorial on how to check if a packet can fit correctly, using Lunar Compress. And how/where to relocate it, if it doesn't.
I'll also add a suggestion to the bug tracker for Geiger to add a feature that displays the compressed/uncompressed size for a piece of data.
In the meantime, if there's more custom graphics to import, post a help message and I'll check it over first before it gets patched in.