Finally got ED (kind of) working with the DK2 but I am "seeing double". That is, the images do not appear to be lined up in the right and left eye sufficiently so that there appear to be two distinct images on the left and on the right in the HMD. Does anyone have any suggestions on how to fix this? I am using the extended mode with a zotac GeForce GTX 980.
You need to ensure that "3D (experimental)" is set to either "Oculus Rift (speakers)" or Oculus Rift (headphones)" in the Graphics settings for it to use the 1080p display in the Rift properly. If you can stomach looking through the left eye only to navigate to Options -> Graphics -> 3D (experimental) -> "Oculus Rift" (either speakers or headphones, your choice) and then go to Apply that should fix it. If that is too much of a headache (and I completely understand if it is) then here is a long-winded way of doing it:
Make sure E: D is not running
Turn the Rift off (press the button on the front so the light goes out)
Start E: D, it should default back to your monitor with the Rift turned off
Go to Options -> Graphics
Set the display to your monitor, not the Rift (normally select Primary) and the res to your monitor native res, and set "3D (experimental)" to Off
Apply, confirm the Apply and then back out to main menu and save and exit.
Turn the Rift back on and wait for the light to go blue and the camera light to go blue
Start E: D (it should use your monitor, not the Rift)
Go to Options -> Graphics
Set the Display to the Rift (normally the Secondary display if you only use one monitor), and set "3D (experimental)" to either "Oculus Rift (speakers)" or "Oculus Rift (headphones)
I don't think it makes any real difference to the renderer with either choice, however since I am using speakers for the audio (not headphones) I pick the "Oculus Rift (speakers)" option myself. Also check that the refresh rate has changed to 75Hz automatically, it should be red to show that it cannot be changed
Scroll up (or down) and select Apply
Put the Rift on, hopefully the display will switch to the Rift and be in proper 3D. You have 15 seconds to select Yes to the "keep these settings?" messagebox or it will revert back to the monitor, which hopefully is enough time to get the Rift on and look around to check it is working properly, then press Right Arrow and Enter to pick the Yes option (just press Enter or wait for the timeout to pick the default No if it isn't working in the Rift).
Hopefully you now have E: D working as a proper Rift application
Note that it often starts in odd orientations, you reset "forwards" with F12 in E: D, so turn the way you want forwards to be and mash F12 if the menus are too far left or right. Also note that the starting menu is (for some reason) deliberately to the left of forwards so you will need to look up and left a bit to see the actual menu, rather than the pretty planet and spinning Coriolis station right in front of you.