To gotta have enough free space on your hard drive for DVD shrink to create an ISO image. For a typical movie you'll need over 4 GB of free space. How much free space do you have?
Your getting that message because you are trying to copy a movie by Beua Vista. It's the copy protection. You need to run it through free DVD Fab Decyrpter then shrink.
@artyng, As jbm2451 stated it's a copy protection issue, shrink alone can't handle decrypting the movie alone, it's going to need some help. Rip the movie files to the HDD using the latest version of DVDFab Decrypter, once done open the files with DVDShrink (use the open files option and browse to the VIDEO_TS folder, highlight it and click ok), at this point use shrink as you normally would (I suggest you reauthor the movie to remove all the extras, keeping just the main title and AC3 5.1 eng audio channel). Get dvdfab Decrypter here: http://www.dvdidle.com/free.htm If shrink gives you a problem when trying to open the files created by DVDFab, you'll need to process the files thru VobBlanker first then open the files created by VobBlanker with shrink as described. Get VobBlanker here: http://jsoto.posunplugged.com/vobblanker.htm
Yup, yup whenever I get the 'out of memory' error I just run the ripped movie through Vob Blanker... http://forums.afterdawn.com/thread_view.cfm/293994http://forums.afterdawn.com/thread_view.cfm/293994