>If I add it to moodle via LTI it seems to work, what could be causing the module not to work.
Both Moodle plugins work differently.
When using the BigBlueButtonBN plugin, Moodle needs to communicate with the BBB for making the requests for creating the session and obtaining information from the session, also for getting and managing the recordings. This is for giving some level of protection to the requests, which although are protected with a signed checksum, don't expose the URL used on BBB.
When using LTI, Moodle is passing the user/course/activity parameters to the LTI broker trough the browser, but the application that is really making the decisions and sending the requests to BigBlueButton is the LTI broker (bbb-lti, which in this case for good is installed in the same server).
In other words, Moodle doesn't talk to bbb-lti at all. You have access to it because it is accessed through the browser (you won't be able to access it from outside your network though). bbb-lti can talk to bbb-web because it is the same server.
>I also have no idea how to record using LTI or give students access to the recordings
There are some custom parameters you can use. See: http://docs.bigbluebutton.org/install/lti.html#custom-parameters
For enabling recordings add record=true