Hi,
Yes, WP e-commerce is known to conflict with the Dynamic Content Gallery. I'm afraid you can only run one or the other. 
"Read More" is coming from this line of code in dynamic-gallery.php:
<a href="<?php the_permalink() ?>" title="Read More" class="open"></a>
Feel free to change it, but note that this line appears 5 times in this file.
Ade.