The Menu Sets in PrE are somewhat different, than the Menus in PrPro/Encore. Yes, they are PSD files, and yes, they do have specific naming conventions to make them function as DVD-Video/BD Menus, but in PrE, much is of a semi-automated nature.
One sets Chapter Markers, a Main Menu Marker, and Stop Markers, if desired (but NEVER at the end of the Timeline).
The intricate navigation in Encore Menus is very tough, if not impossible to do, in PrE.
Some of the links in this list of resources will explain how things are done in PrE, and especially Steve Grisetti's Basic Training series: http://forums.adobe.com/thread/800455?tstart=0
Hope that helps,
In Premiere CS3 I can create individual videos. Then I import them into Encore CS3. Each video can have it's own separate chapter(small video icon.) I can then select which chapter to play.
Create individual videos, Premiere Elements 12.1 can do. Apply a disc menu to the project, Premiere Elements 12.1 can do. Each video can have its own separate chapter and select which chapter to play , Premiere Elements 12.1 can do.
But, in the case of Blu-ray disc format on Blu-ray disc and AVCHD format on DVD, you can select which movie to target but you cannot get it to return to the main menu at its playback conclusion (unless of course the movie selected is the last in the line up of movies). This all relates to the old story of Premiere Elements stop markers on these disc do not function in the player.
With DVD-VIDEO on DVD disc, this is completely can do since stop markers in the content do function in the player.
And, also one movie cannot have its own Scene Selection page.
I have not seen any user intervension to change the Stop Marker Blu-ray AVCHD playback matter.
The following is an Adobe document on Premiere Elements and Disc Menus.
If you want to get into creating disc menus from scratch in Photoshop CS or higher or modifying/customizing existing Adobe disc menus, please let me know. I have some very detailed how to blog posts on that.