My guess the path is not set for the DVD, or you do not have a Mpeg2 decoder installed.
A while ago I made an image from my Super Don Quixote Laserdisc capture, and managed to get the file size down to 500mb, to work on my bartop via Flash. I used Dirk for the front end and it worked perfectly for me.
I have seen Dragon's Lair and Space Ace sell on eBay for less than $10. Maybe you should go that route in case your source is corrupted. Google Dirk or go ask the Daphne Devs for more help.
Also you need to use Daphne with your main display, otherwise it will remain black and play music and beep.
let us know how you get on.
