I’m having a bit of trouble understanding your diagram, but hope this helps . . .
The first thing to know is that the Traveler (Red) wire in the Dragon Tech works very differently than in a typical 3-way setup. For the Dragon Tech switches, the Red wire (as well as the Remote switch) NEVER have main power passing through them regardless of the state of the system (this is very different from a regular 3-way installation). Instead, the Red wire acts as some sort of a signal carrying wire to the Dimmer, but never carries main power to the load. The Black wire is the power carrying wire.
So, for typical setup . . .
I assume there are two gang boxes with “typical” wiring. That is, Box 1 has a first cable with a “hot” Black/White pair from the fuse box (call them B1 and W1), and a second cable with Black/White/Red wires (B2, W2, R2) running between Box 1 and Box 2. Box 2 has the incoming Black/White/Red (B2, W2, R2) from Box 1 and a third cable with a Black/White (B3, W3) to the load (lights). I haven’t mentioned neutrals, but those are handled in a typical fashion – all joined together with connections to the neutral grounding screws.
What you do (obviously with main power off!) is . . .
At Box 1:
W1 and W2 are both connected to the Neutral screw of the Remote switch. Effectively, this is a typical “join all white wires” setup.
The HOT wire B1 and B2 are then simply connected together with a wire cap. B1 is not connected to anything else at Box 1. Effectively, this means that the B2 entering Box 2 from Box 1 just acts as a connection back to the fuse box and is always HOT when the circuit breaker is on.
At Box 1, traveler R2 is connected to the Traveler screw on the Remote switch.
At Box 2.
W2 and W3 are both connected to the Neutral screw on the Dimmer. Again, this is effectively a “joint all neutral” wires connection.
Traveler wire R2 from Box 1 is connected to the “Traveler” screw on the Dimmer. Thus R2 only goes between the Dimmer and the Remote switch.
B2, which is HOT, is connected to the Line screw on the Dimmer.
B3, to the lights, is connected to the Load screw on the dimmer.