That's disturbing. I've never had a movie act like that after ripping with Decrypter. Did you try ripping as an ISO then working with Shrink?
Do you have other tools available, such as Nero Recode or Rejig? Just to see if this affects other transcoders. Or you might try an encoding program, like DVDRebuilder if you have some time to experiment.
The only other suggestions would be to use another type of decrypter, or possibly a program like AnyDVD to rip to the hard drive. I don't remember seeing any recent change logs to AnyDVD mentioning region 1 disks though, nor anything related to this movie.
Do you think you could rip in ISO mode with Decrypter, then burn to a DL disk in ISO write mode? Not an attractive option I admit, since you might make an expensive coaster.