I have tried burning "Day After Tomorrow" with Srink 3.1 and after cutting and compressing it shows no red by far. When I encode, it gets to like 1 minute and a bit, and breaks off telling me there isn't enough space. What gives? I am backing it up to a folder of it's own. It tells me there isn't enough disc space.
After reading your post a few times I get the the idea your error happens while ripping the dvd to your HD. How much space do you have left on the HD. Most dvd backup processes need at least 10 gig of free space. If the problem is possibly with Shrink, set its output target size to 4300. Jerry