Yes it is a know 'bug' or more a feature to put it in M$ terms.

But indeed in future version we might need to look into a quality option with very long movies.
DVD2one performs best on normal to somewhat longer movies, the extreme long things like SPR, LOTR etc etc can cause some of these shimmering effects.

The only advice i can give you at this moment, it just TRY AND SEE.
(it's not that encoding with DVD2one takes ages )