To burn directly w/ dvdshrink you need to have nero, otherwise it will just make the vob files and the iso for you. BTW, the size limit for a commercial dvd is closer to nine 'gig, since it is dual layer. That's why it's called dvd"shrink"...it shrinks it down to a 4.7 gig dvd. With dvdshrink you can strip out all the menus and extras like dubbed languages, subtitles, commentary, etc, and just copy the "main event". That way it won't be as greatly compressed.
Or you can do what I do...rip 'em with dvd shrink and re-encode them as avi files using Dr. Divx.
Yeah... I know what DVD-9 is...
The reason I didn't know DVD Shrink didn't burn DVD's is because the version I've been using is VERY old. Pays to pay attention I guess.