Well there are several ways to go about doing it. You can create the button highlights in photoshop by selecting the blank menu in encore, then go to 'Edit > Edit Menu in Photoshop'. This will launch photoshop and you can create the button highlight by following the directions in the help documentation.
You will need to create a Layer Group and name it with a (+) prefix. You then create a new layer and give it a (=1) prefix. On this layer you can create the highlight graphic (can only be 1 color, and no feathering).
Another option is to create a menu using the templates in Encore, then while selecting the menu, go to 'Menu > Create After Effects Composition'. Once it creates the composition, you can modify it and animate it as you like.
Much of this information is found in the help documentation and tutorials are provided on adobe's website.
Jon Geddes
Motion Graphics Designer
http://www.precomposed.com