I have searched for hours on this issue and done the following... dma check, turned off virus software, ran multiple tests on drives, reinstalled, etc. Still getting under 1k kb/s when encoding.
Assuming that the disks have been ripped by the likes of DVDFab HD Decrypter and you are only using Shrink to transcode to a smaller size, try changing the video renderer or even turning off the preview (Edit > Preferences > Preview) or even updating the video card drivers.
Boot into safe mode and run it to see if it makes a difference or get an earlier version of DVD Shrink and try that.
Do 64 bit PC's have problems running a 32bit program - I don't know, it may be relevant.
Try posting at the Videohelp site for insights re Windows 7 and Shrink.