Open Shrink and look under Edit->Preferences->File I\O. Make sure the box next to “Enable burning with Nero” has a check mark in it.
When you are set to compress the dvd, hit Backup. You should see a drop down list that says Select Backup Target. Hit the little arrow on the right and you should see your dvd burner listed under Burn with Nero. Select it here.
To burn your current set of files, make a dvd-video with Nero. Start Nero Burning Rom, select DVD-Video and hit New. Drag the Video_TS folder to the left side of the window, make a label and start burning.
Edit: A little late