Do I remember you saying you put the 64MB in Bank B?If I use my stock ROM, the system shows 2MB of RAM instead of 65MB - it will boot the MacTest ISO - but it won't run because not enough free memory.
I'd start by putting the 16MB SIMMs in Bank A, which is what the Apple instructions say. This will especially help when you're using the stock ROM.
While you have them out, clean the contacts on both sets of SIMMs using IPA (rubbing alcohol).
I can't boot from the ISO - it hangs at "Welcome to Macintosh". The README on the ISO says it includes a System 7.5.3 bootable installation on the CD. I think because of my replacement ROM, I'd need to update the "gusd" in the boot image, which I had to do for my hard drive image. Except the ISO is read only since its a CD device Instructions I used for my HD image are these:
You don't really need to boot from the ISO to run the tests, I never do. I wouldn't worry about patching that OS just to run the RAM test.