[r0lZ]

I strongly recommend to avoid DVDFab to copy a DVD, especially if it is unprotected and already burned on a DVD-R. DVDFab skips silently any error it encounters, assuming that it's a protection. Unfortunately for you, the result is often a damaged disc. That may also explain the BSOD you got with some machine or players. (I recommend the good old DVD Decrypter when the DVD is not protected by a recent form of protection.)

The "Source Picture Letterboxed" should be ticked when the original movie (or "source") has the 16:9 aspect ratio but the Title on the DVD has the 4:3 flag set. In other words, when the 4:4 video has a small 16:9 image letterboxed into it, with horizontal black borders. When the "Source Picture Letterboxed" is ticked AND the player is connected to a 16:9 TV with a SCART connector, then the player is supposed to send a signal to the 16:9 TV telling it to zoom into the picture to hide the black borders and display the 16:9 part of the image in full screen. Unfortunately, many players or TVs ignore that flag, and therefore it is globally useless.

As explained by TheSkiller, your original movie was probably in 4:3 (with or without black borders) but the DVD recorder has erroneously set the 16:9 flag in the IFO. To restore the correct aspect ratio, it is normally sufficient to tick the 4:3 option in Domain Stream Attributes. (As recommended by TheSkiller, it might be also a good idea to fix the aspect ratio in the VOB files, for the (rare) players that take the AR in the VOBs rather than in the IFO, but normally you can skip that part, because the AR stored in the IFO has precedence.)

It is possible to create a simple button with PgcEdit, but it can only define the transparent clickable area and the colour and transparency of the rectangular highlight. In other words, you will not see the button when it is not selected. If the menu is a still image (with or without sound), you can save the background image as a BMP with the preview, edit it with any paint program and import it back in the menu with VobBlanker. It is also possible to export and import the subtitle containing the button highlights to edit the highlight of the new button. There are several guides explaining how to add a button to an existing menu available here at D9 or in other forums. Note also that you will have to edit the navigation commands yourself to call the right clip when the button is activated, and to return to the menu when the alt closing clip has finished playing.