Okay, I have the strange feeling everything is working, but you didn't notice...
Okay, at first, remove ALL media from the drives. Check the tray, it must say On:0, Off:0, Empty:2
Exit all burning apps, rippers, tools, bla, bla...
Insert a CSS protected DVD. Watch the little fox. It must change colour. Check the tray, it must say On:1, Off:0, Empty:1
Open the drive directory, copy one of the VOB (VTS_01_1.VOB) files to your desktop. (Drag it over)
If you get an error now, AnyDVD is seriously confused and failed to authenticate the drive.
Remove the DVD, use PowerDVD or WinDVD to open the copy of VTS_01_1.VOB. Do you see anything useful?
If yes, AnyDVD did its job nicely, and CloneDVD is confused.
If not, uninstall AnyDVD. Check for lost parts, especially if you used a loader / keygen / crack or something.
Check, if Windows\System32\Drivers\AnyDVD.sys really was deleted. Best thing to do is to reboot now before reinstalling.
Now install the newest version of AnyDVD and reboot again.
If it still doesn't work, wait for the next update...