Hi,
I have the same problem.
I created 3 menus in Photoshop. Highlights show the names of the items. After burning the DVD, I tested it on a Mac and a PC (progressive screens) and also tested it on a normal old fashion 4:3 tv (interlaced) connected to the mac. Everything works fine.
When I tested it on the same tv but connected on a DVD player, the menu items (highlights) are unreadable. They look like a interlaced progressive signal (if you understand what I mean) but they look badder than that.
The problem is with the (=1) & (=2). The (=3) are good.
(=1) is red, (=2) is black & (=3) is white
VLC also shows bad the menus
Here are some print screens:
How it should look:

How it’s looking on a TV with DVD player:

And how it look with VLC:

You can see in VLC some displacements & some grey areas and they’re are no grey areas in what I made. Only Red, Black & White
Thx for your time