Re: Layered Menus Made in Photosho...
Are you using Photoshop CS5 to prepare the images? The reason I ask is that when creating still images and importing them into Video / DVD there may need to be conversion due to the pixel aspect ratio difference.
If you're using PS CS5, when you create a new project choose the Film and Video Preset and choose NTSC DV Widescreen.
You'll notice that the pixel aspect ratio is 1.21 whereas the NTSC DV template is 0.91.
You can watch the first five videos of the "Photoshop CS5 204 : Preparing Still Images for Final Cut" for free which will help a lot!! I'd recommend purchasing the tutorial as it is highly informative and I love Michael Wohl's style:
Hope this helps,