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A highlight on a DVD-Video menu has only three useable colors - not nearly enough to create something that looks like a real photo. But probably enough to make your sketch version with.
Set up the unselected state of your button as the sketch, with maybe white as background and black for the lines (and a little gray here and there to make it look less "pixely"). For the selected state set all colors used as fully transparent. Make the photo your button image.
As long as a button isn't selected the photo is hidden by the sketch. Selecting a button makes the highlight (the sketch) transparent, thus revealing the photo.
It may help to watch the "Highlight Colors - The Low-Down on Subpictures" video tutorial available at Internet Archive: Adobe Encore DVD .
Ruud may have forgotten about this, but since his idea was so good, I'll take the liberty of trying to explain further.
1. I hope you know how to set up the menu in photoshop. You'll have inside your button groups a. a layer with your picture in it. and b. a white layer that covers the entire picture called (=1) hlt and a third layer with the sketch on it called (=2) hlt. These HLT layers should be above the picture layer.
2. Go to Menu - Edit menu color set and from dropdown select "Menu Default".
3. In first group of 3 colors called "Norml Group" click the first color and change to white. Turn up opacity to 100%. In second color change color to grey and also turn up opacity to 100%.
4. In second group called "Highlight Group 1" turn the opacity of first two "selected States" colors to 0.
5. Also turn the "Activated states" opacities to 0.
6. Then Close that down and go to your menu and select each of your buttons in turn and in Properties Basic make sure the "Highlight" is set to group 1.
Preview that and see if it works. I hope that's what Ruud had in mind.