You can swap out the background with a still or video right in Premiere Elements. I show you how in my free article "Creating DVD Menus in Premiere Elements" at Muvipix.com.
<http://muvipix.com/products.php?subcat_id=41>

In my members article, I detail how to actually customize a DVD menu template, by taking the template apart in Photoshop Elements.
<http://muvipix.com/products.php?subcat_id=7>