I have had the same problems with DVD Shrink hanging and stalling on a few brand new movies. Sony has come out with a new copy protection called Arccos, basically a new type of bad sector protection. The newest version of AnyDVD from Slysoft ver 184.108.40.206 has the new tools to remove or get around that.
The other movie that I had a real problem with was Little Black Book, and once I had AnyDVD installed and working right DVD Shrink had no problems at all pulling both of them off correctly and shrinking them at the same time, so you do not need to copy it first then compress, with AnyDVD in place Shrink works as normal.
I was able to get my hands on a copy of Forgotton and it was really bad with the "bad sector" message and once again with AnyDVD and Shrink it worked fine.
Well thats my 2 cents good luck everyone out there.