From what I've been able to gather, version 4.1 of DVD SP has a bug in it that causes still menus and slideshows to look terrible - I don't know if it's as a result of an interlace issue, field order, or what but many people have reported this same problem. It looks great on a computer monitor but absolutely terrible on a television.
Here's a brief description of the problems with my menus and slideshows:
The text looks blocky and a bit fuzzy. The moment a button is selected, the image clears up and looks great during the transition to the content (all of about 2 seconds). Slide shows are the same, the image only looks good during the transitions, and then it looks fuzzy until the next transition.
I have to deliver 200 dvd's with crappy looking menus (the client hasn't mentioned it, and I've given him proofs to check) but I have no recourse at this time as I can't wait for a fix any longer as my client needs these dvd's now. I've tried all the tricks and proposed rememdies described in the various forums on this subject with no difference. It's extremely frustrating - to pay for a dvd authoring program that can't even create a decent menu. I will likely lose this client because of this and I can't get more dvd authoring work until this current problem is resolved.
I'm assuming you are working with version 4.1.x of DVD SP? Apparently, people with earlier versions have gone back to them and the menu problem has vanished. I don't have that luxury unfortunately as 4.1 was the first version I bought.
If someone does figure out a work around - I would love to know what it is too!