Ok, I’ll go through it step by step with you and see if we can get you to where you want to go.
Start DVDShrink. You are trying to get one big file as output, so we’ll go to Edit–>Preferences–>Output Files. Now uncheck the box that says Split Vobs into 1 gb chunks.
Now, put your dvd in your drive and hit Open Disc. Since you are going to one big file, you’ll want to get just the main movie, not the extras and menus, so hit ReAuthor. Now click on the Title that you want to capture…this is almost always the largest found under the Main Movie section. Drag and drop this entry over to the left hand side of the window.
At this point hit Backup. This is where you select your output—click on the Target Device tag. Under Create DVD Files, select Hard Disk Folder and set a destination on your hard drive for Shrink to target.
Hit OK and it will start the backup process.
That’s it. I’ve already told you how to convert the resulting .vob file to a mpeg2 file, so you should be set.
If you run into a dvd that Shrink can’t handle on its own, you’ll need to rip the movie to the hard drive and work from the files made by DVDFab HD Decrypter.
Edit: Dialysis beat me to it, but we’re describing the same thing here.