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How large is the photo you've swapped in as a menu background?
Photos used in Premiere Elements should be no larger than 1000x750 pixels at 72 ppi.
Thank you Steve. I thought that could be the solution because the photo I was using was a lot bigger than what you suggested. Unfortunately, I am still having the problem with a much smaller photo (less than 400 pixels in each dimension at 70 ppi). It is interesting that after burn the DVD and close Premiere Elements, the menu background reverts to the default when I open the project again.
Several of the menu templates for PRE9 had problems, such as custom backgrounds ignored. A. T. Romano did a lot of work on investigating these issues.
It seems likely that whatever caused the faults in PRE9 is also tripping up with your PRE4 template. Others have reported that the problems were fixed in PRE10.
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