Apparently the problem still exists with Nero Recode 2 and AnyDVD. I have the latest version of both.
With AnyDVD running I can open Recode 2, get the movie to show and edit. Once I try to analyze/encode though, it just sits there for awhile, no picture moving in the preview window and then an error shows that Recode 2 could not read it.
Doing this same thing using DVD Shrink instead and no problems whatsoever. If I take that same movie and decrypt it to hard drive first (with AnyDVD turned off), Recode has no problems with it.
This is a bummer. I thought this was supposed to be fixed by now.