[Ray Lane] “When you create a new menu, I didn’t realize that it does so by bringing in a black PSD file. It’s bizarre that by choosing new nenu that it does it that way without even asking! “
That’s not quite what happens. It imports the default menu from the Library.
There is one default menu, and one default button in the Library. If you choose New Menu, you will get the default menu. You can change the default menu by choosing another menu in the Library, right-clicking on it and setting it to default.
So the problem was your default menu was standard definition-sized.