You'd probably be better off posting in the DGDK forums, but never mind.
First, take a look at the dbOffsetSprite function - this is used to specify the 'hotspot' of the sprite, which controls the rotation point and the positioning of the sprite relative to the coordinates you give it. Tinker around with it and you'll soon understand.
Next, the dbRotateSprite command sets the absolute rotation of the sprite, ie, it's not cumulative with earlier rotations. What you can do instead is use something like this to rotate:
if ( checkRight() )
{
dbRotateSprite(PLAYER_SPRITE, dbWrapValue(dbSpriteAngle(PLAYER_SPRITE) + 2.0f));
}
The dbSpriteAngle gets the current angle of the sprite, then you add 2, then use dbWrapValue to ensure that the angle stays in the range of 0 to 360.