Update.

Real confirmed that the quicktime update mungled the configuration for SMIL 1.0 file types.
If you want to return correct handling of smil files:

Removing SMIL 1.0 from quicktime's file preferences won't fix the problem.

However, you will note in your realplayer 'Media Types' preferences that if any of the media types you originally assigned to realplayer have been taken by another application, a bullet should appear to the right of the corresponding media type(s) and the "Save Media Types" button should be enabled. Try clicking on the Save Media Types button and play your content again. You may need to quit and restart firefox and realplayer.

It appears that checks in the Media Type boxes are no longer a reliable UI signal :-(

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eMac  10.3.6  Build 7R28  1.25 GHz PowerPC G4 768 MB DDR SDRAM