Backup Dummy File, Illegal TOC and Bad Sectors CD?

Sorry if this is long winded but I have spent a couple of days on this problem and am now totally stumped. I have also posted this in the Newbies section.

The software runs straight from the CD and does not need to be installed. The 3 main applications are simply menus and they were developed with DemoShield. When I run one of these EXE's from the files copied to the HDD it asks for the CD to be inserted to continue.

I have a refernce CD (Manuals etc) that I would like to backup before lending to some firends. I have tried to backup the files by copying it to a directory on the HDD. There seems to be a hidden dummy file (820Mb on 700Mb CD). When I copy the hidden file I get a CRC error.

Looking at the Disc in a bright light there seems to be a black 'dot' on the surface of the CD. I had the disc polished but on closer examination the dot seems to be in the pigmant layer of the disc and therefore did not polish off.
Is this a manufactured bad sector?

I used nero to look at the tracks on the CD and there is 1 data track which starts at 0:02.00 secs and is 0.01 secs long (2Mb). 1 audio track which starts at 2.01 secs and is showing 954437:10.45 Mins:Secs long. Then there is the third track which starts at 2.00 secs and is 79:19.45 Mins:Secs long (698Mb).
I assume this is what an illegal TOC looks like.

I've tried to back it up with Clonecd, BlindWrite, Nero and DiscJuggler. CloneCD makes a 830Mb image but the disc can't be read when I burn it to a CD (700Mb). The other programs spend hours reading the original CD and throw up Disc read error after Disc read error. After about 5 hours of reading the disc I've cancelled the process.

I used ClonyXXL to inspect the disc for protection and it shows Dummy File and Illegal TOC. I have the Nero ASPI layer on the machine (Windows XP) and when I run ClonyXXL with the ASPI layer enabled it reports ProtectCD-VOB as the protection method, TOC Illegal and Track<4secs.

I am running Windows XP SP2 with a NEC ND-1300 DVD writer. Can anyone help me with what to do in order to back up this CD.

Thanks