Here are ways to fix overlapping highlights:
Move the buttons farther apart on the menu.
With your pointer over the DVD menu, press Command-I to open the Menu Info window. Choose “Free positioning” in the Buttons section of the window. This allows you to move the buttons wherever you want on the screen. Yellow alignment guides appear as you move buttons to help you place them.
Type shorter button labels that don’t overlap.
Highlight the label for a button by clicking it twice, and then type a new label.
Reduce the font size for button labels.
Click a button twice to highlight the text. An in-place control (shown below) appears below the button. Choose a smaller font size from the font size pop-up menu.
To change the font size for all buttons at once, hold the Shift key down as you select buttons. Or, click one button and then choose Edit > Select All Buttons. Then press Command-I to open the Button Info window. Any changes you make apply to all selected buttons.