You'd be best off removing it. It's essentially cardboard/fiberboard. Even though the dynamat may stick, it may not last long and that would suck to have it all fall down onto a new headliner.
The job is a total PITA, but with patience you can do it. I just sat in there for a couple of evenings with a paint scraper and went to town.
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1969 Firebird, Black w/Parchment Arizen interior, 383 Pontiac Stroker (350/428 crank), TKO600, Moser 12 bolt, 18" TTII's, Hotchkis, GW, DSE, Speed Tech, Vintage A/C, etc.
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