There are so many issues involved here, and half these things are laws and the other half is just fear of legal hassle.
But by fair use rights (there is no actual law giving you fair use though)
Umm, yes there is! It's been well established in copyright law for nearly two hundred years! It's the whole basis behind the existence of libraries, for cryin' out loud. Maybe you haven't been to a library lately - they loan out music CD's and movies on VHS and DVD. It's all perfectly legal and all allowed under the fair use provisions explicitly granted in the law. The DMCA subverts that, and as soon as one of the challenged cases gets to the Supreme Court you can bet that large portions of this abomination will be ruled unconstitutional. The main thing about the DMCA is that it completely bypasses any semblance of due process as guaranteed by the constitution - anybody can shut down your enterprise just by making an accusation - no proof is needed that you are violating any law, and you don't necessarily even have the right to confront your accuser or even know who it is. Basically you are guilty until proven innocent. If I wanted to mess up your life all I'd have to do is hire some slimeball attorney and file a complaint that you are violating the DMCA - and boom! - you are out of business. No proof necessary. Of course after you spend thousands of dollars proving you did nothing wrong, you - and make no mistake the burden is on you to prove you are innocent, not on me to prove you are guilty - can go about your life again. This is scary stuff, unless you enjoy living in a police state.
DVD's are owned not licensed, I'm not sure where Codewiz gets that from. Maybe because the decoder software is licensed and the only way to play the DVD is using that software (whether it's built into a stand-alone player or whatever)?
So either it's legal to both rip DVDs and (copy-protected) CDs, due to your right of fair use being more important than the DMCA, or it's the other way round.
That pretty much sums it up (aside from the constitutional issues that go along with certain provisions of the enforcement of the law). And that hasn't been decided by the courts at this time. What do you think? Are the rights of the corporation greater than the rights of the individual? They're not supposed to be.
EAC should work just fine with WinXP - it does for me and many others. Make sure you are downloading from the "official" site
www.exactaudiocopy.de and make sure your downloaded file is not corrupt.