It turns out that the black bars only appear in En. They’re not on the actual Blu-ray disc. I made a test Blu-ray disc with a Verbatim BD rewritable. The footage displays edge to edge beautifully on my 50″ plasma TV. I’m happy:) So I guess it’s just a bug I can ignore in En as long as the final product is good. Thanks for all the help!
There’s no PSD menu yet. Just a new menu assset in En, then I added a motion background by selecting a .mov via the motion tab for the menu property. PSD is the next step, but I haven’t gotten to that point. All my stuff is in 1920×1080.
I found out what’s wrong with it. It’s the export setting. If I use “Lossless+alpha”, the text comes out sharp and smooth. I was using NTSC DV which is a compressed format. Thanks!