Lamp and dimmer installation
Dimmers don't like shorting

The dimmer indeed should be black to black and red to red, with green to the grounds and the red/white striped wire capped off.  The light fixture though needs to go from wall box red to fixture black and wall box white to fixture white, with the grounds connected and the black wire in the fixture box capped off.

Connecting the light to black and red won't work because there's no return path for the current (i.e. no connection to neutral).  Your dimmer burnt because you grounded its output (the red wire) -- you should never ground a wire you don't know what to do with.  Cap it off by itself instead if in doubt.