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If I want to do serious animated menus and have very high quality compression, what software should I be starting with? I would produce all the raw materials in Adobe Premiere 6.
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Adobe Premiere 6.5 allows direct MPEG2 exporting. You'll need separate authoring software (like Sonic MyDVDit!) for the menu design and button programming. Buttons and menus are generally designed in applications like Photoshop, although most DVD authoring programs support most popular still image formats (BMP and Jpeg, for instance). Animated menus will generally consists of several layers of MPEG2 video, buttons and text, etc....play with the software, and expect to burn a bunch of test DVD's...