So my understanding is that a delta function $\delta(t)$ has the value of $\infty$ at $t = 0$ and $\delta(t) = 0$ everywhere else. Essentially, it's just one big spike on a graph right?
In my signal processing lecture, I came across the following:
Here, we arrive at $X_1[k] = \frac{1}{2}\delta [k - 1] + \frac{1}{2}\delta [k + 1]$, which means $X_1[k]$ only has non-zero value at $k - 1$ and $k + 1$. However, using my definition of a delta function, shouldn't $X_1[k = \pm 1] = \infty$?
This isn't the case when you look at the graph. It shows $X_1[k = \pm 1] = \frac{1}{2}$, so what's wrong? Is there some other delta function I just don't know?

Two answers here.
Delta function is defined as something which has the following property:
$$\int_{-\infty}^\infty \delta(x) f(x)dx=f(0)$$
It is not a function but some special symbol.
Now, $a \delta(x)$ is defined as heaving the following property:
$$\int_{-\infty}^\infty a\delta(x) f(x)dx=a f(0)$$
That's it.
By definition via Fourier transform,
$$\delta (x-\alpha )={\frac {1}{2\pi }}\int _{-\infty }^{\infty } \cos(px-p\alpha ) dp$$
This gives formally $\delta(0)=\frac1\pi \int_0^\infty dx$ You can consider this divergent integral the value of Dirac Delta at zero. It is not a real number though.
This way, $a\delta(0)$ would be $\frac1\pi \int_0^\infty a dx$, also a divergent integral.