Well teedge I found the solution for my problem, I decided to have one last go before I gave up on the project, and I did a few things differently. First, I didnt install the DVD CSS codec initially. Second, I disabled the onboard nvidia lan, and i put in two intel lan controllers. I had a feeling that having only one lan port could be causing problems, because of the DHCP server in linuxmce.
Installed it, and everything works like a charm. After I got the menus working, I went into the web admin panel and changed the network settings so that I assigned the PC a static IP. Then after the internet started working, I used the following commands to install the DVDCSS:
sudo apt-get install -y libdvdread3
Since then everything has been working fine. I hope this helps anyone that has been having problems.