I installed ImgBurn and the latest version of DVD Shrink that supports ImgBurn and everything’s working fine. I’ve concluded that Nero 8 and DVd Shrink are not compatible.
One caviat, if you want to use DVD Shrink with ImgBurn, first, you’d have to uninstall the current Shrink and reinstall a new version. I saw some thread in the afterdawn.com forums that describes this process. Thanks for all those who helped and hope this clear up some concerns for those who have the same problem.