Just an update on my findings. Since Spektrum wasn't specific enough and there is literally no information out there, I thought I'd post this up.
So the 4 channel SRS4200/4201 WILL NOT work with the
Dynamite kill switch no matter what. Even if you disable the AVC, none of the 4 channels will properly activate the kill switch during failsafe operation. I confirmed this after fiddling with the stupid thing for hours. I have no idea why, but when Spektrum says the SRS4200 will not work, it simply will not work. Now, you can still kill the motor from the radio while everything is running, but that doesn't serve much purpose as a failsafe. It just works as a remote kill switch which is useless. The whole point of a kill switch is to shut the motor off when you lose bind.
Here's the stupid thing, Even though the manual says the
dynamite kill switch isn't compatible with AVC receivers, it is compatible with SRS6000 6 channel AVC receiver. I guess nobody at Spektrum bothered to update this information when the SRS6000 came out to replace the SRS4200, or nobody bothered to test it. NICE! So I've confirmed that both with AVC on or off, the extra AUX channels will properly activate the kill switch during fail safe.
I've read multiple posts of people having issues with the dyanmite kill switch not working while connected to the SRS4200, even with AVC disabled. A lot of people are saying the Dynamite kill switch is to blame. It just isn't, it's not compatible. I'm sure they assumed what I initially did as well, which was that with AVC on there isn't enough channels for the kill switch, but with AVC off, you get 4 channels. It doesn't work that way. You cannot use those spare channels with AVC off to work with the kill switch. Don't try it unless you have the SRS6000. I have 2 Dyanmite kill switches and I've setup 3 more on friends cars. I've never had a single issue with them. At first the guys who had them said they were $hit, I set them up and they work. So honestly people posting up negative things about this kill switch probably just don't know what they're doing. They've worked flawlessly and I'm glad I didn't spend the extra money on a Killerbee for nothing. I just wish these incompatibilities were properly documented.