I recently finished my first project taking several clips then using a supplied Movie Menu theme. When I did a Disk Burn to an iso file everything went fine. Later, I repeated the burn but went directly to DVD. Again, it all worked fine. I closed the project, came back later and opened it again and the Movie Menu frames had been altered. The Titles I had put in were in the wrong font and line ends and special characters were changed to ascii coding. Also, the frames for the scenes were changed in size and shape. The images in them were messed up too. The video itself was fine. This behaviour was not exhibited after doing the iso burn. Does this sound familiar to anyone?
The good news is that it is not familiar behavior. The bad news is that I don't know how to duplicate your issue and won't be of much help. Premiere Elements should not and normally does do what you described.
I'm still working on this. I have determined that the menus are messed up even before doing any burn. I was mistaken in my original observation. The problem is created when I want a text entry to span multiple lines. I use Ctrl-Enter between lines. It even occurs in other text boxes on the menus, such as the movie title. When I close PE (saving the project), restart PE and reopen the same project then I see the mess. The text lines are now on a single line, with the ctrl-enter shown as the coding for cr/lf. These seem to then resize the menu buttons themselves as well.
Someone else reported the same problem a couple of years ago but that's all I could find.
I have had the same problem many times. Have not determined when it happens. Today it happened when I changed from 4.7 GB ISO to 8.5 ISO. Only thing I know to do is recheck the menu just prior to burning the ISO.