bevinator: You have to access an Mdisk reader and then click the "Save Game" disk. You should have the same game disk already. If you're talking about the Mdisk that you pick up in Pey'j's shop, there should be a reader just behind you. You can also display all the readers on the current level from the map screen. You can ONLY save your game at an Mdisk reader.
Also, screen tearing is likely just a graphics issue. Tinker around with the options, particularly those in the Manual section of the Advanced tab in the options program. I had to disable "HW Vertex Processing" to make the game playable at all. I have terrible flickering and tearing with HWVP on, and the text is almost unreadable.
On PC. Seriously.
Fuck this game, dropped.
Edit: I played 45 minutes. Then something came up. No save option in menu. So it's one of those games. Well, I quit the game thinking it saved when I went outside the house.
I start up the game, no savegame, and the cutscenes are unskippable.
I heard so many good things about this game, but this is beyond repair.