The most recent Jurassic Park movie has a solution to this problem. In it they say that they had to use genes from amphibians together with the dinosaur genes in order to create their animals. This way the issue is reconciled.
Still, a life-size velociraptor ot T-Rex covered in a coat of feathers must be quite a sight.
"T. Rex Was Likely Covered in Scales, Not Feathers"
What I don't understand is how something the size of T rex doesn't just die from heat shock whenever it breaks into a sprint. I vaguely recall reading somewhere that one of the dangers facing beached whales is that they start to overheat rapidly. Did big dinosaurs just live in cooler environments? Do they have better ways to dissipate heat? Did they like dipping in lakes and ponds? I'm sure someone would have asked these questions already, but no idea what current thinking in the field is...
Jurassic Park lied to me twice
Next thing, somebody will point out that there are no 12-year-old girls that routinely use SGI workstations. :.-(