Its good that dvd2one is kinda processing them ok. Make sure you're using an up-to-date version of that because I know people had problems with vobs that the program thought were encrypted but werent.
Going by the changelog, DVDShrink 3.1. now also fixes the 'cant decrypt vobs' error.
As Recode is based on DVDShrink, I expect its the same problem?
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