My first thought was it's a bad or dirty disc. In that case, clean the DVD, clean the laser, use a different reader if you have one. Or set DVDDecrypter to ignore read errors, if there aren't a mess of them in a row, it might not visibly affect playback. And before someone recommends DVDFabDecrypter, that's exactly what Fab does when it hits read errors. Dunno how many retries it allots.
I've occasionally seen that error when there's bad sector protection, IIRC. SMC1979's suggestion is perhaps near the mark, but Shrink is bogging down during analysis, so that won't help. This is a Universal release, anybody know if they use ARccOS protection? I know about Sony and Columbia Pictures. But the DVDDecrypter error is well into the first VOB, so maybe bad/dirty disc after all.
BTW, that encryption error you got? It's from DVDDecrypter and DVD43 fighting over who's gunna decrypt. When you clicked yes to all, you let DVDDecrypter take over. You might try no to all. If you want DVDDecrypter to do it, just close DVD43. And the last version of DVDDecrypter is 22.214.171.124. Get it at http://mrbass.org/