Welcome to the site. I'm glad you asked the question here.
The code on page 62 is actually fine. It just isn't performant. By working through the book you will come to page 73 where we change the code. We introduce the vertexDeclaration variable and move the effect local variable to a private member field.
To begin with we are simply getting the first demo running. We then check performance and see different items we can do to help the application perform better.
The CD is a snapshot of the code in it's latest form. As you work through the chapter the code at any point in the chapter may not match the end result of the code on the CD. However, by the time the chapter is finished it should definitely match.
Hopefully this helps. If not, please let me know and I'll be glad to clarify.
Edit: You can find the Xna assemblies by making sure the .NET tab is selected after you click "Add Reference" from the context menu. (You bring up the menu by right clicking the References tree node in the Solution Explorer of the IDE)
You can scroll down and see all of the Microsoft.Xna.* assemblies.