^_^ I'm like Kino in a way.
I can't always do the full out theater in my mind. For some reason my mind is more attracted to the characters and the actions.
Most of the time I see the characters and they are just kinda "there" - it's only during impactful scenes that I'm salivating over that my mind takes the time to draw out the surroundings. In a way it's like the movie is full-on close up and then it suddenly pans outward.
There are times, though, that my mind cannot fathom anything - reading some of Piers Anthony's books does this to me. I just can't always grasp the concept he is trying to convey in which case I don't even bother trying to imagine it but I'm not really missing out. The view just cuts out those parts ^_^
I see only words for about the first two minutes of me reading - ten minutes later if I'm still seeing only words, I put the book down because the magic is just not happening.
Also, how about your guys' focus? Is your concentration when you read easily broken? When I get into a book NOTHING breaks me out of unless I'm touched or something gets in the way of me and the words.

My old school friends had a lot of fun with me, apparently, and enjoyed poking fun at me (they once stole my bookbag!) But it also lead to a huge fight between me and one friend who was convinced I had been ignoring her because she just couldn't believe I was THAT out of it. -_- And of course, sitting on the bleachers that one year the kids enjoyed getting to throw a random ball at me. Nothing like reading and then suddenly getting your face rammed by a surprise rubber ball that you KNOW was intentional and looking up seeing everyone laughing at you.
Worst part is, I always remembered those parts in the story and when I return to them to re-read them at any time I remember "oh... this is the part where I was when that ball hit me..." Fucking bastards.
:3 The first time though that I looked up and four hours had flown by was an intersting experience! I look up and I'm like o_o "why didn't mom call me down for dinner?" I kinda snuck down afraid I was in trouble, but, no, apparently they had went to my room and called out to me and everything, but when they saw how happy and absorbed I was with my book they just figured "meh, she'll come down when she gets hungry."
I do not, by the way, register hunger when I'm reading. Thirst if it's really bad. Bathroom breaks, however, will pull me out of my book.