Don't convert it, you'll lose something in the conversion, you always do..
This shouldn't be happening, is there any chance you can take screenshots of the problem (CTRL + Print Screen then paste into Word or something similar) ? When you insert the DVD into your pc drive, then open Windows Explorer at that drive, you should only see 2 folders right ?
AUDIO_TS will be empty, VIDEO_TS will contain loads of files. When you start DVDShrink, and say "Open disc" and load the dvd up what do you see ? Take screens of the DVD drive's VIDEO_TS folder, screenshot of DVDShrink, and a screenshot of the resultant folder...