Don't know... Saw3 is still waiting on my desk to be examined. But I have the premature feeling, that on the fly decryption (what defines AnyDVD) won't cut it anymore for Shrink.
The technical reason is simple: AnyDVD does not, can not and will not analyze the .vob files. Why? It would defeat its primary purpose, as it would need to scan the whole disc after you inserted it. You don't want to wait 15 minutes for the disc icon to appear in explorer. This would be a waste of time, as a copy tool like CloneDVD wouldn't take longer to copy the whole disc to the harddrive.
So you need to "repair" the disc and save the repaired files to harddisk. AnyDVD ripper was a "kludge" which did this, but still - it isn't AnyDVD's primary purpose.
You can use any "repair" tool to copy the disc to harddisk. Maybe VOBBlanker would do.
You could copy the files to harddisk and use FixVTS on the files. Or kindly ask jeanl to add a "copy from A to B" option into FixVTS.
IMHO using CloneDVD2 really is the best and most elegant solution, as you can "preprocess" the disc already while copying it. Something AnyDVD ripper or FixVTS cannot do.
Nevertheless, I *will* look into Saw3 & Co., and if I find a way to make Shrink happy, I'll do so. Unfortunately Shrink isn't really saying much useful why it dislikes the input. "Not enough storage to process this command" isn't really helpful.