You can actually run DVDShrink in Linux using a Windows emulation tool called wine. It takes a little time to set up, but I made a tutorial that should walk you through it. Check it out here:
http://www.linuxquestions.org/questions/showthread.php?postid=1152931#post1152931
http://www.linuxquestions.org/questions/showthread.php?postid=1152931#post1152931
Honestly, I've looked for Linux native tools to do it, but this program is probably the best option. It's just a matter of making it work in Linux. As far as a burning tool, check out K3b. It's the only one I've used and as far as I'm concerned it's great. Hopefully this helps, and good luck.
-Knappster