I found the problem has something to do with nero not shrink.
most of us that have shrink also have nero.
both of my new litey drives that wasn't working before in shrink are now working,..SH-16A7S sata and 20x LH-20A1H
if shrink isn't working for you I will bet in shrink prefferences you have burn with nero enabled.
dissable it and it will work.
do this before you put the dvd in your drive, then enable anydvd put in you disk, let anydvd do it's thing open shrink and it will reauther the main movie.

I also found that if I try recode2 first which still won't work and then go to shrink it won't work,..but if I open and close the drive and anydvd does it's thing again shrink works.
give it try and post back

Well maddog you are on to something here

With one of the LiteOns that gave me problems I find that following your suggestions does permit Shrink and CloneDVD2 to work with AnyDVD running in the background. And I also found that if I try Recode2 then I had to open the tray and reload the movie to get shrink to work a second time.

So there is something in the firmware, or something in Nero, or something in AnyDVD that will not let them all "just get along" Where is Rodney King when you need him.

yep,..it only took me 2 months of screwing around to find out that it was nero not shrink.
so evidently when you load nero or have any software i.e. shrink communcate with nero,..nero loads something in a win temp sys somewhere that is screwing with the 3rd party encoders.
my problem is I'm not smart enough to figure that one out.
how 'bout it James, you can do it. PLEEEEEASEE

ok,..I just got my 16x sata working with anydvd & recode2.
in anydvd settings I unchecked the Hardware Region code:Simulate RPC2.
but this didn't work on my 20x litey, however the sata works faster, so I'm satisfied for now,..but keep going till I fix these litey probs.
gome on James help me

Ok, unchecking of Simulate RPC2 did not help with the SHM165P6S drive. Sure is the craps getting these newer liteons to rip like they did in the past.

My SHM-165P6S MS0R works flawlessly with AnyDVD. I've even used it with Recode with no problem. The MS0R firmware is RPC2 and has riplock removed. I don't know if that makes any difference. I just moved it from a firewire case to my video machine a few days ago when I got my new LG drive...

the SH-16A7S sata and 20x LH-20A1H has always worked with shrink and recode2 if you ripped the movie to the hard drive first with anydvd then use them to compress and decrypt.

but if you use anydvd running to do it's thing and try to use shrink or recode2 on the fly from the disk (not ripped from the hdd) tha'ts when you get the failure to read because shrink tells you the disk failed because it is encrypted and recode2 will tell failed couldn't read the VOB_1 file.

OK, Kip
forget all the crap I was doing with the region code stuff.
I just got all my lite-on's working with anydvd doing it's thing and using Recode2 & Shrink 3.2.
I put all the programs (anydvd) back to default settings.
Just messing around tryng to get my 20x's working I found this worked,..at least for me.
I leave the movie out of the drives,..

then I activated anydvd:

then I opened Recode2,..selected "Record main movie to dvd"

then put the movie in,..anydvd did what it does,

and no problem,. ..can you beat that crap,..oh well.

did the same steps for Shrink,...but chose "Reauthor" before putiing the disk in the drive.

Give it a try on your 165 and then post back.

But realize Shrink do not bother with Nero before ripping encoding and shrinking the files only after is the Shrink will ask Nero to take over and copy (write) the ripped files.

OH really,
Is that why in shrink prefferences if I have burn using nero I get read error and shrink won't work and then if I dissable the nero burn, close shrink then open it again so re-reads it's set up,...it WORKS.

OMG! I have nero and the option was on in shrink, I will put the Litey's in tonight and report my results.

did it work for you

I put the 165H6S in, and I have confirmed that it works for that drive. I havn't tested the 20A1H, but I'm sure it will also work.

Thanks for finding a solution here maddogvic. Maybe now these lite-ons will get some use, now that they're not just burners/scanners but can rip too!

Nice find

Maybe i never had problems as i never use Nero?.............well i do use Nero CD-DVD Speed though

I unchecked the box anyway

Well, kiss my _______. Dam good find there Maddog.

My 165 is reading the disc with Nero as I type this, anydvd running.

Now, I wish I would have kept the 16A7.

Thanks again.

kip

Look like there s happy ending here.