If DVD Shrink 3.2 cannot read the disc, you should try DVD Decrypter. Go to Tools –> Settings and the I/O tab. Reduce error retries to e.g. 5 and check “Ignore Read Errors”. Then, use ISO read mode to rip to hard disk and then use DVD Shrink on the saved ISO file.
Alternative method: http://forums.afterdawn.com/thread_view.cfm/124000