Roxio won't backup CSS copy protection and it never will.
You will ahve to use a 3rd party program to copy the DVD. Something like RitIr4Me -> DVD Decrypter. You could then I suppose use Roxio to burn the resultsing files but I would stick with either DVD Decrypter or use the newer burn software ImgBurn to burn themk back. Will do a better job all around.
As to your other qquestion I can't remember but so long as you don't sell them or distribute them I doubt they would prosicute or even find out.