OK, so after reading through lots of Forums, I haven't found an answer to this issue that I am having so anyone who knows of a solution, please respond.

I'm having a problem of my video files not playing in the background of a menu when I add buttons.

In order to test this at the simpliest level, I created 2 projects.
One SD one Blu-Ray. Each project was set up the same way.
1 Blank wide menu
1 video file (m2V format)SD or H.264
1 Audio File (wav format)

Note: I used a SD video wide screen 29.97 in the SD project and a H.264 (Blu-Ray output from Premier media encoder) for the Blu-Ray project.

Now when I attach the video & audio file to the motion tab under the menu,
and "preview from here" the video plays in both projects.

HOWEVER, when I add a simple text "PLAY" and convert it to a button, (and after I render the menu) the SD project will play the audio & video files in the background but the Blu-Ray project will only play the audio & not the video.

What happened? Does Encore NOT support H.264 files in the motion menus when anything is added on top of that layer? I have tried this every way in every combination. The Blu-Ray project will not play a video file when anything (buttons, text, graphic, symbol) is placed ontop of it in the menu. I have tested this on 3 different machines. Same issue.

Has anyone else experienced this problem?

I'd appreciate any response asap. Thanks!