you have to use E2 as image, it's not possible to use E2 media player with dgs image.
myself, i use dgs image as main image (in flash), and i installed E2 image on an external USB drive to use its media player.
all i have to do is to put the files i want to play in /media/movie directory then startup the box with the USB drive.
E2 media player handles fine avi/divx SD files, mkv SD and HD files, dvd iso images or vob files, and transport stream files... so its very useful if you want to use your ipbox as media player
Never noticed any audiosync problems, but sometimes it may hang or freeze on some HD files.