Sorry for the delay Jeff, here's a screen cap that may make it clearer...

In PS create a seperate layer for each "state" of the menu option

I used 3 states"

1. Default - this is displayed when the cursor is elsewhere ;)
2. Over - this is displayed when the cursor is on the menu option
3. Down - this is displayed when the mouse button is depressed (no, not mentally!)

I also used the third state as a visual clue for the page displayed. (If the user is on the ABOUT page, you'd want that menu choice to be different than the others - sort of "greyed-out") You can do this by modifing the code generated by ImageReady...

I was trying to put together a tutorial for the "new" tutorial section of the site but am behind in... EVERYTHING!

let me know if this helps,
:)
retrocity