I’m a newbie so keep it slow…
Failed with latest DVD Decypter. Error message as stated:
[I]I/O Error!
Device: [1:1:0] TDK DVDW1616N 2.C8 (E:) (ATA)
ScsiStatus: 0x02
Interpretation: Check Condition
CDB: 28 00 00 00 C4 40 00 00 01 00
Interpretation: Read (10) - Sector: 50240
Sense Area: F0 00 03 00 00 C4 40 0A 00 00 00 00 02 00 00 00 00 00
Interpretation: No Seek Complete[/I]
Tried to backup with DVD Shrink and also a no go. Anyone have any suggestions?
Possibly a bad source disk. As Alex suggested, You should try AnyDVD & CloneDVD (free trial from www.slysoft.com) just to be sure.
since sony arccos uses dummy sectors i must disagree on that one 
anyway i recommend this combo dvdfab decrypter+dvd shrink
And I must disagree with your disagreement.
“Never Say Never Again” has been out since the late 90’s. There is no Arccos on it, never was, and never will be. It’s an MGM/Universal release, anyway, with nothing on it but CSS.
Maybe it is a re-release of a re-release with Arccos? AFAIR it wasn’t MGM/Universal but MGM/United Artists (do they still exist?). MGM was bought by Sony a while ago…
“Never say never…” 
Regarding the physical condition of the DVD, it’s in perfect condition, without any scratches. The DVD release, from MGM Home Entertainment (MGM/UA), was on Oct. 17,2000.