I'll help you since I am making "Perfect Warfare" in 2d in DBP.
Blue background problem: just type in "cls" at the beginning of the code
Sprite hit problem: Don't use it, use "if sprite collision(sprite#,sprite#)=1 then blah blah blah"
I have no idea how to print text over a sprite though, goodluck with that. Even though I barely started Perfect Warfare want me to send it to you right now to show you how to do 2d with DBP. You'll be happy you got it. 2d goes much faster in DBP as well.
Without hating, this world would be perfect.