Paul pointed over to ShrinkTo5, an open source replacement for DVD Shrink, and blogs his experience. Basically it's attempting to be a legal version of DVDShink, which means it doesn't seem to be able to or willing to deal with encrypted DVDs, or at least without some modifications. Interesting read... for now I think I'll stick with DVD Shrink, though this looks like it might have potential. I'll play with it at home and see how it does.
Too Bad ShrinkTo5 Is no longer ShrinkTo5, they are now a really sucky soft called "dvd next copy"