You can have DVDShrink save its output on the hard drive. When you hit Backup, you'll see a pop up window, and in the first tab that shows up you select Hard Disc Folder as the output.
Once the program is finished making the copy, you'll have the movie in the appropriate size to burn to a disc. Your burning program should be able to burn dvd-video, but I'm not familiar with it. Look at the options in that program.
Or you could just use ImgBurn in Build Mode to burn it. ImgBurn is free to download and use. www.imgburn.com
There is a version of DVDShrink that can use ImgBurn automatically. You can find it on this page http://www.videohelp.com/tools/DVD-Shrink
Look for the line that says Download DVDShrink for ImgBurn. You'll have to unzip the file and follow the instructions on how to install it.