Halo artifacts in text overlays

I am using overlays for text in my menus. The menus have been created in Photoshop CS3. In Photoshop, I am creating 720x480 images. I have the pixel aspect ratio view turned on...which I believe helps deals with the rectangular vs. square pixel issues.
When I create the text, I have learned that I need to rasterize it first before I copy that layer to create the text overlay. Next, I select all of the pixels in the overlay layer and fill the pixes with black. There is usually a single pixel halo around the text at this point. To account for that, I add a single pixel stroke around the overlay layer contents. Once I complete that step, in Photoshop, everything looks fine...the overlay perfectly masks the original rasterized text layer. Since I create the stroke as a Photoshop layer style, I make sure I flatten that layer (by merging it with a blank layer) to embed the layer style into the overlay layer itself. Next I output the menu background and menu overlay files as TIFF files. The overlay file contains black and transparent pixels. (I am using simple overlays.)
When I import these pieces into DVD Studio Pro, sometimes that nasty halo artifact raises its ugly head again. If I am using a light to medium button color in DVD Studio Pro, it is not noticeable. But selecting a darker color really makes the artifact stand out.
What step am I missing in my work flow here? Thanks in advance for your input.
Cheers!

Suzane:
Probably your problem is not in your overlay but in the color settings of your overlay/button in DVDSP.
Select your button, and in the Inspector pallette go to the Colors tab. Check Advanced and in the Selected settings do something like this:
using 3 different levels of the same color (in the example yellow) for ecah level of gray. The antialias in your overlay elements norders are grays pixels and probably the "halo" you see is the color that now you have in this settings for the gray tones.
Hope that helps !
Alberto

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