Maybe this is what is causing the problem with the buttons:
If Your Buttons Don't Work Properly on Burned DVD
Your buttons may not be routed correctly. Turn on Show Button Routing in the Menu editor and verify that each button arrow specifies the appropriate button number in the menu.
If any buttons do not, uncheck Automatically Route Buttons in the Menu properties, and then drag and drop each button arrow so it points to the desired button number (each button arrow corresponds to the same arrow buttons on your DVD player remote control).
(From the Adobe Encore forum
FAQ.)