To activate Search & Rescue, you are correct that the ball must go into the right side kick-out hole. Once in there, it activates.
As for the shark flipper, every machine is different (hence the settings), I think mine is around 97/98. I don't recall at the moment, but going up vs. down in numbers changes how early/late the flipper reacts after the rollover switch is activated. What I did was take the glass off, go into the shark flipper setting, and repeatedly drop the ball as if it came from the "Earthquake" VUK wireform and see what adjusting the numbers did until it was on target. Note that this doesn't mean that during gameplay it will always nail it as the ball will come through that area at differing speeds, but it will allow it to be as accurate as possible.