When I make my Menu in Photoshop it has vibrant nice colors. After the menu has been transcoded in Encore the colors looks washed out both on my computer monitor and on my TV. Is there eny way to keep the original colors?
Try to play with your colors. Encore will make your colors "video safe" which results in color shifts. This is a technical thing inherent to all video. You can sometimes achieve the same result by using slightly different colors that are in the safe range (16 - 235 per channel for 8 bit RGB for instance)