Sub picture highlight - missing the big picture

Question

Windows 7 64-bit, Photoshop and Encore CS5, everything patched
I have been banging around on this for days, off and on, and I'm sure I must be missing something obvious. I created a menu in Photoshop but even if I use a built-in Encore menu (like Sunset), I cannot figure out how highlighting is supposed to work. Everything I try causes Encore to display both (=1) and (=2) layers at the same time, or nothing.
To make it as simple as possible.... Assumption is that the menu is already part of the Encore project so, from Encore, select the menu and edit it in Photoshop.
a) In Photoshop, I have a layer group named (+)PlayAll. Under it I have a text layer whose name is, not surprisingly, Play All.
b) Create (=1)highlight layer on top of the Play All text layer.
c) In (=1) layer, select the line tool and draw a line segment 3px high, I chose white.
d) Create (=2)highlight layer on top of (=1).
e) In that layer, draw a second line segment slightly above the first, same color and height.
f) Make sure the (=1) and (=2) layers' visibility is off.
g) Save the menu in Photoshop, close the menu.
In Encore:
a) Menu > Edit Menu Color Set is unavailable.
b) Menus tab page, Properties > Basic for the button, the Highlight list is unavailable.
c) In the Menu pane in the middle, if I click Show Normal Picture Subpicture Highlight, the button is not visible. If I click Show Selected Subpicture Highlight, both line segments are visible. If I click Show Activated Subpicture Highlight, both line segments are visible.
d) If I preview the menu in Encore, only (=1) line segment displays. Selecting that menu option does not cause the other segment to display.
I have tried the same thing with:
a) The Sunset menu
b) Circles placed on top of each other instead of offset line segments
Same results. I am missing something basic along the way.
g)

Answer 1

I'm in CS4 at the moment.  Help clearly says you can select the menu in the project or menu panels.  Menu -> Menu Color Set is greyed out.  In other words, I agree this is not operating properly.
But you do not have to select one of the state buttons; just select the menu in the Menu Viewer, and you can then access Menu Color Set.
I have confirmed this in CS5 also; I added the following commebnt in the CS5 help file for "Menu Color Sets":
To edit the menu color set, you must open the menu (which means to open it in the Menu Viewer) or, if open, select it in the menu viewer.  "Define a menu color set" above describes this correctly.  "Base a new color set ..." says to select the menu in the project or menu panels.  This does not work; "edit menu color set" in greyed out under those conditions.