Hi. I’ve been having the same problem. I animated a Psd menu in AE 7.0 – 8 seconds – made it an Encore timeline and made sure its final frame was the same as the static menu screen. The menu itself was linked to a piece of music and lasted over 5 minutes. The problem is there is a jump rather than a smooth transition between the animation and the static menu picture. Other than that, the whole DVD works correctly. I hope there is a solution or workaround to this.
(By the way, this is my first message on this forum!)