Combining VIDEO background with PHOTOSHOP menu??

Here's what I want to do:
I designed my buttons/graphics in photoshop. I want to place these into my menu, with a video file playing behind them. This means, I want the graphics/ buttons I export from photoshop to have a transparent background so that the video can show through.

In DVDSP, whenever I set my .psd file as the background, it shows a black background (even though there is no background in photoshop and layers are enabled when I export). It recognizes that the background is transparent when I set my .psd file as a sub-menu or a button, but not when it is the background.

How do I do this? It seems like the most common and simple thing in the world, and yet it is so difficult to figure out! Every tutorial I've seen deals with creating a static background in photoshop. I want a video!

And just to illustrate my process, I used this video to learn how to do the photoshop process (only difference is I don't have a background layer because I don't want one): http://vimeo.com/1045125

One thing I noticed: when I click "Save as" in my photoshop project, and I select "Photoshop" as the format, it shows "include alpha layer" as greyed out. It's the same for every format. I don't know why this is, but could it have anything to do with it?

What do you mean by a "simple overlay" and how do I create it? I thought that was what I was doing.

I understand the basic concept; I need somebody to tell me HOW to do it. I have spent hours with DVDSP trying to do exactly what you just described, Michael. Can you tell me how it is done?

Thanks!

Yep- that combo cannot be done. It's either- still + photoshop menu or motion menu + simple overlay. All of this is in your manual- or I do happen to have a tutorial for how to do it:

http://www.callboxlive.com/products/dvd-studio-pro-special-edition

Noah

Call Box Training.
Featuring the Panasonic GH2 and Panasonic AC160/130.

To make a button you just click & drag over that area in your menu. If you're in the manual I'm sure referencing buttons will have examples. Making a button on a menu is the same for still & motion menus. The only time it is different is when you use layered menus from .psds

In any case you won't be using the layered menus.

Drop the video into the menu
Set your overlay file
Click & drag to make a button
set your colors for selected & activated states

Thank you everyone. I figured out how to make the menu based on your suggestions. Glad I know how to do it now!