I tried out version d2o v1.1.3 and kept getting the "encrypted data detected"error when I tried to rip "The Princess Bride".
ISSUE: ALSO RUNNING DVD Region Free 2.1.
After I added the dvd2one.exe to the list of applications that DVD Region Free recognizes, DVD2One works without error.
I haven't read all the groups - so this might be old news already. But this solved the "encrypted data detected" error conflict for me.