I had always do it this way and I never ever once seen such an error before like out of memory not enough storage with DVD Shrink. This is how I done it.
I rip the DVD with DVD Decrypter to my hard drive which leaves it compressed which exceeds 4.7GB, so after ripping I run it through DVD Shrink in full disc and not re-author and use automatic compression and than backup and burn with ImgBurn to 4.7GB SL DVDs. This time when compressing with DVD Shrink it goes down to 5 minutes remaining and gives an error. The name of the DVD is Deadwood Season 1 Disc 2.
How do I fix this error?