According to your logfile your drive is set to region 3 not region 1. When checking in Device manager you have to completely exit out of AnyDVD to get the correct reading.
You are also using a Matshita drive (possibly the worst drives in the world) which tend to be hardware region locked so you usually have to have them set to the region of the disc you are trying to decrypt as AnyDVD can't bypass the hardware region lock.
You could either wait for
@James to say which it is or try changing the region to region 1 by exiting out of AnyDVD and setting it in Windows then seeing if it will then decrypt properly