I created a video layer in Photoshop.
The traditional method: you do nothing in Photoshop for a motion background (unless you are talking animated buttons). You select the video (and separately audio) in Encore and add it to the menu. Encore takes the "Background" layer from the menu and uses the motion video instead.
Photoshop now has some video capabilities (and then those changed, right?), but I think you're only asking for trouble to try to add motion inside photoshop.
Unfortunately, when I use my newly created presets, I don't get the m2v files automatically import and linked to the menu in Encore
To make a template from your menu, you export as template from Encore, add back to the library is you wish, AND the motion video (m2v) must also be saved to the library (or other location) to be available when the menu is used.
