Normally, I use TMPGEnc DVD Author to create my dvd's but it is so inflexible when it comes to laying out the menu, that I have turned to DVDit PE.
I have read several posts on here regarding creating menus. I size them to 720x576 (PAL), I save them as either a BMP or JPG, and then import them into DVDit and I make sure anti-aliasing is turned off.

They look totally fine in the softwear preview. But I can spend hours in Photoshop creating professional looking backgrounds, only to have them look incredibly crappy (excuse the language) in the final video once the DVD has been built. I have gone through what little settings DVDIT PE has, and there is nothing there relating to quality of the menu

Is there a reason why DVDit PE reduces the background menu quality like this, because TMPGEnc DVD Author certainly doesnt do it. Even if I use a BMP it comes out looking like a badly compressed JPG in the final video.

Alternatively, is there a better piece of dbd authoring softwear out there that allows you to drag and drop menu items to where you want them, but does not interfere with the quality of what you put into it.