Let me see if I can help you out.
Folder structure..... Let's say you have everything installed to "SINGE"
Ok in the "SINGE" folder you should have a version of daphne, and all of your launch bat files out loose in the folder.
In "SINGE/singe" you should have a bunch of folders and/or just a "maddog" folder
In "SINGE/singe/maddog" you should have a bunch of png images and a bunch of ".singe" files.
In "SINGE/singe/maddog/cdrom" you should have all the m2v, ogg and .dat files.
I'm mentioning all of this because unlike daphne, you don't really get to choose where this stuff is installed... at least not easily.
For example, if you move the batch file, it won't work... it needs to be in the base folder.
Your actual bat file should look something like this:
@daphne.exe singe vldp -fullscreen_window -framefile singe/maddog/frame_maddog_cdrom.txt -script singe/maddog/maddog_cdrom.singe