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I read your problem with DVD Shrink so I installed it in Windows 7 32bit. It worked perfectly. I installed NERO 6 ULTRA EDITION for burning to a blank DVD. I use this version of NERO because DVD Shrink would not automatically burn with other programs I had to open NERO and point it to the location where DVD Shrink saved the file of the movie. I did not use any other program I just setup the preferences of DVD Shrink it works perfectly. I don’t understand why you are unable to make Shrink with your Windows 7 installation.
I hope this helps.