Ok, so #1 is fixed. I can now playback Blu Ray on my PC. I found that I needed to update my Nvidia drivers as well as the Cyberlink software in order to make BD-ROM Discs playable. All the info for updating the Sony BWU-100A drive can be found here
http://sony.storagesupport.com/BDupgrade/
They have handy software tool that checks your system for Blu-Ray compatibility.
Now then.... anyone have any ideas on my #2 problem? I still haven't found an example workflow online that uses stock Adobe Premiere output into the cyberlink software...