1. Am I doing this method correctly?
Yes. You would have to find out what protection it is before you did anything. Use Alcohor's profile in Alcohol for the game you want to read and burn. The settings differ burner to burner.
2.What is EFM? Why do I have to bypass it?
A good explaination of EFM(Eight to Fourteen Modulation) is here. You have to bypass it because your burner cannot write it correctly.
3.What do you mean by emulation?
If you use emulation, software mimics the way the protection works. Emulation is useful when trying to play a burnt game from a burner, when your burner cannot copy a protection successfully or when you are playing from an image. For protection emulation, get this . For ATIP hiding(Making a burnt game work in a burner), Use Alcohol'a Ignore Media Type or CloneCD's Hide CDR media.