Jitter along normal is just displace, right?
There is Displace Along Normal that you can construct inside a VOP.
Or just throw down a mountain SOP.
Try a small negative lift value on the Ray node to bring the decal off the surface. If you lift far enough, you get a shadow as well.
I find that Mantra really needs full black and white images to do alpha work correctly. That cyan may be the result of Mantra using your image colors as luminance instead of just reading the alpha as it should. So make sure to “spoon feed” the Classic shader a true black and white image, such as the baconAlpha shown in this image.
There is an animated geo example at this link