Great screenshot, thanks. 🙂
The first thing to do is remove all of the overrides. Not just for the buttons, but anywhere in your project. You don’t need them, and as you have discovered, they can seriously mess up your navigation. Set them all to “Not Set”.
That should fix your navigation. If you still have problems after deleting all of the overrides, please post another screenshot exactly like this one and I’ll have a look.
-Jeff
The Focal Easy Guide to Adobe Encore DVD 2.0