It's maybe a little hard to describe, but I'll try my best.
1. Create a background. This image should contain everything you want on the menu EXCEPT for the actual highlights.
2. Save the background as a .tif, or .pict file (other formats will probably work too).
3. Create another file with a black where you want your highlights to be. For example, if you were using a rectangle as a highlight, make a pure black rectangle in the correct spot such that it lines up with where ever it needs to go (this is where Photoshop becomes useful, because of layers, but it's not strictly necessary).
4. Save this file as a .pict file (TIF, and PNG might work too).
5. Import both picture files into DVD SP.
6. Create a new menu in DVD SP.
7. Drag the background picture from the assets window on to the menu in the graphical outline window.
8. Click on the menu in either the graphical tab or outline tab.
9. In the menu inspector, at the bottom where it asks for the overlay file, click the drop down box and select the picture file with the black overlays for highlights.
10. On the colors tab in the menu inspector, select simple mode. Next, choose the colors for normal, selected and activated states for the buttons on this menu.
11. The final step is to actually create the buttons. With the menu selected, make sure the menu tab/window is visible. Inside this, you should see the menu background. Click and drag to create buttons where they need to go. You need to make sure you completely contain each highlight within the boxes. Also, you CAN'T have overlapping buttons, so be careful not to let them overlap.
You've not got your buttons. You can set them up to link to other elements in either the button inspector or in the connections window.
Hope this helps, if you have any questions, let me know. Also, the Discussions forums on
www.apple.com can be very helpful. You don't need Photoshop to do this, but I can tell you from personal experience that it's very nice to have. For one thing, you can use separate layers in the same Photoshop file to do the background(s) and overlays, and in fact if you want, you can make ALL the menus in an entire DVD with one PSD file, with different layers containing different elements.