For DVD Shrink to make a copy of your movies it REMOVES the CSS encryption, so you ain't got a copy like the original, you just got plain decrypted VOB files that are either re-encoded (NOT re-encrypted) to fit on a blank DVD or just left decrypted ready to burn.

And not all movies you buy have encryption on them anyway.

As duffydack says, CSS encryption has nothing to do with compatibility. It's either you're using DVD Shrink wrong or something wrong with your system.