Actually, you don’t need to edit jquery.smartmenus.min.js at all, you can use the stock version. It doesn’t use $ but jQuery and when you add this:
var $j = jQuery.noConflict();
jQuery will free the $ variable but will keep jQuery so you could still use any plugins (that are properly coded to not rely on $) without any modifications. But yes, for the initialization lines, you would need to replace $ with $j or jQuery like you’ve done.