Matt,
First, you should check out the documentation and simulator that Creative has put together (
here). It probably has the best general explanation of how to program on the X-Fi2. There is a good site
here about LUA for beginners. For a little more advanced info you should check out the X-Fi2 LUA wiki (
here). I'd suggest that you read through the documentation that Creative has in their package and then try to take apart one of the existing apps/games.
As for the DVD that is not working, I'm not sure how much help I can give you. I've had problems ripping these 'non-professional' DVDs as well. Without the DVD to test out different configurations, I'm basically shooting in the dark. I'm working on a solution using the program called MediaCoder, but I'm running into several problems there as well.