I believe James would say that this is a Recode bug, which is probably a reasonable response, considering that DVDShrink handles the rip from Anydvd ripper perfectly fine.
DVDshrink requires a fairly strict adherence to the dvd-video standard. So if DVDShrink can handle something, then everything else should as well.
Similarly, DVDShrink has no issues with Pirates of the Carribean (the first movie) R1--but Nero Recode does with respect to making a full disc backup.
I agree too that it is has to be a Recode bug. That's why I also tried a Fab rip. (just to rule out an Anydvd issue). I also recently tried POC 1 (I didn't try it with the latest Anydvd; it was a month or two ago. But again, the issue doesn't lie with Anydvd). The results were the same.
Shrink is great, but it amazes me that such an outdated program can import files flawlessly while a current program cannot.
Unfortunately, I doubt that such an issue would be a high priority on Nero's end.