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Adobe Encore should achieve what you want but you need to famliarise with creating Menus and DVD authoring.
A DVD once authored/ created should generallly have the same Menu functionality on whatever player. (eg Computer Player or DVD standalone player)
Encore DVD comes bundled with Premiere Pro CS3, you might want to ask this question on the Encore forum also.
You might want to listen to your gut. The cell level programming needed to create such an interactive DVD is likely beyond the capabilities of Encore, and would probably require the $10,000 Sonic Scenarist to create.
Which supplier are you quoting? My last info was around $ 35K.
I can't remember where I saw it. It used to be about $50,000 in my part of the world, but since the Blu-ray and HD options came out, the base version has come down considerably. The last price I saw was about 10 Gs.
Still, 10, 35 or 50. Anything over 1 is probably out of reach for the average Adobe user.