I searched, and was unable to find a helpful thread using words like animated cursor, overlay, graphics, etc...So here goes.
I created a menu in Motion. Each menu item had a spinning "logo" next to it. I created an overlay in Photoshop, and covered the logos in red, exported a tiff, and added as an overlay in DVDSP. Everything works fine. When I arrow or mouse between different items, the logo appears, and disappears as expected.
The problem is, when actually making a selection on the menu, ALL logos appear briefly before going to the next menu or track. So the nifty little trick is "exposed" when a selection is made.
I saw posts referring to layered menus. I will check that out in the documentation, but from what I've read here, it's not a good idea. Since this is a demo reel I'm working on to send out, I would like this to work on as many systems, configurations, software/hardware setups as possible.