1. DVDShrink will not do that for you. It's written to do DVD->DVD backups
2. To actually do a VOB/IFO dump to your system, something like DVDDescryptor or Smartripper will get the job done
3. After that, you'll need some program to transcode the VOB to MPG/AVI ... for thar, something like DVDx is good ... made a guide for it here http://www.hazza.dsl.pipex.com/GUIDES/DVDxGuide.pdf