What format was the image in? If you used JPEG then expect it to look pants after encoding - the image is already in a lossy format... compressing it to MPEG will not improve things! If you can get an EPS file, or TIFF this is the best start point. TIFF can go right in to DVDSP, but otherwise use Photoshop and export as PICT or TIFF. This will help considerably.
If you composite the logos and titles externally and bring them in to DVDSP as MPEG for the menu then do not add anything else when you get them there. If you do so the entire menu will be re-compressed using the settings in your DVDSP preferences. Typically, you will bring in the asset, set it into a menu and then think you'd like a new shape or something from the templates... this won't be MPEG and when you add it will need to be encoded. DVDSP has to re-do the whole thing, not just the shape. Adding buttons, however, is fine - these don't get encoded as a menu item, but go into the sub-picture stream instead.
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lafcpug mod