When you import an Adobe Photoshop (PSD) file into Adobe Encore DVD as an asset and add it to a menu, transparent areas are black.
Note: This does not happen in Encore DVD 1.5
Do one of the following:
Solution 1: Drag the PSD file to a menu.
Drag the PSD file to an active menu from Windows Explorer or Finder.
Solution 2: Add the PSD file to a menu from the Library palette.
Solution 3: Import the PSD file as a menu.
Choose File > Import As > Menu (or File > Import As Asset in Encore 1.0.1), navigate to the PSD file, and click Open.
Solution 4: Save the PSD file as a TGA or TIFF file.
In Photoshop, save the PSD file as a TGA (Targa) or TIFF (Tagged Image File Format) file, and then import it into Adobe Encore as an asset.