Yeah Damon won't die - that would be the death of the show. Tyler wasn't properly turned, so either it will just take ages to heal, or some wolfs-bane will heal it or the moon stone will or something... Or, that potion thing Elijah had will be given to Damon as a "thank-you for killing my brother" present from him.
Also, Elena won't change into a Vampire. I haven't read the books, so I don't know if she's supposed to eventually, but it's too early in the series for them to do it... I'd give it another 2 season minimum before she'd be allowed to get turned.
So, instead I think she will wear Jeremy's ring during the ritual, thus not actually dying, thus allowing her to not become a Vampire or be dead. Remember, Elijah only said it wasn't certain whether the ring would work or not - not that it definitely wouldn't. Either that or Bonnie will cast the same spell on Elena that she used on herself to fain dead to Klaus.
Finally, DID NOT expect Jenna to get turned! That certainly came out of no-where. Well maybe this will give her a real plot line/improved personality like it did for Caroline.
Have you not been watching the episode.
RINGS DO NOT WORK ON HER. She is a supernatural being born through magic,a doppelganger, an identical and same person born the second(or __-th) time. Resurrection rings do not work. It would not work on Bonnie, so it certainly WON'T work on elena. Also it certainly WOULD NOT work on her NOW, because she has vampire blood in her system. Thats like 2x the supernaturalness.
As for "too early". People thought introducing Katherine won't be done till season 3 at least, people thought it would be "too early", people thought we won't see Klaus till next season too. TVD is known for going through multiple seasons worth on plot in very fast pace in one season.
Not to mention it would give us a nice double meaning to the title of 2x22, with both Elena and Damon "laying dying".
Also, this is sort-of the set up of Klaus as main Villain, since
, it would make sense to give main character(Elena) the reasons to hate and opposite him(and hate him).
Also I do not see Jenna surviving next episode. They can't have thousands of vamps running around and we do have a funeral after all...
AS for the books,