Where are you judging this DVD menu's blurriness? On a TV?
The frame size of a DVD is 720x480 pixels.If you're looking at your DVD at 720x480 -- particularly on a TV or with software like VLC Player -- it should look crystal clear.
This, of course, will NOT be the case if you're watching your DVD blown out to full to full screen on, say, a 1280x1024 computer monitor.
(There are also issues like interlacing, which VLC Player compensates for nicely on a computer and Windows Media Player and Quicktime do not.)
I have seen what you are talking about with regard to previewing of the disc menu in the Movie Menu section of a Premiere Elements 11 Windows project. But in the burned to disc for that project, I have not seen any problems in the DVD-VIDEO on DVD disc produced for this project (menu included)..
There is no way in Tools to select whether you want a SD or HD menu.
Setting of the project preset determines what Movie Menu theme set will be available to you. If you have a HD project, there will be mainly HD menus waiting for you in Movie Menu. If SD project settings, you will have either a "s" or "w" set waiting for you. In the latter case, you cannot presume which you will get when you select "w". The program may use the "w" version but often does not, using the "s" version.
(I am using "s" to represent standard, "w" to represent widescreen, and "hd" to represent high definition).
What specific menu or menus is/are presenting in the DVD-VIDEO playback as blurry? Is it just text or everything? Are you customizing the menus in Movie Menu section? If so, how are you customizing them? What are you using as your player(s)?
Lots of questions to explore.
Please review and supply some further details.
In the case of those menus not marked HD, the only way to know if you are getting "s" or "w" is to read the Notepad document of the saved project.prel file.