The latest versions of Recode should work, as well. Since you said you have Nero 7, you may want to give that a shot. Recode was written by the same author as DVD Shrink and provides a very similar result.
If you're intent on keeping Shrink, you could grab the latest beta of VobBlanker(freeware product, VERY nice) and use that as a ripper in combination with AnyDVD. The bonus is that you can blank out titlesets you don't want giving DVD Shrink more room to work with. It's very easy to use despite the sometimes overwhelming looking interface. In any case, using VobBlanker(the latest beta version) as a ripper you can still use DVD Shrink and AnyDVD.