I am running 1920*1080 and have not seen that - i am running a SVN version though - so maybe its already fixed!
Are you running the latest RC4 SVN version: 12-07-2008 10-44h - Revision:21026? I just updated to that one and I still have this issue. See screenshot attached, this time on a screen resolution of 1280x800. Anything but 1280x720 gives me this issue. Even 1920x1080 gives me this!
The basichome generator makes it pretty easy to make your own custom menu. My emulator isn't supported atm but will be with the next release thanks to emphatic.
instead of the text being pushed over there is no text when highlighted for moving pictures and one other one which I can't think of at the moment but the others are fine. how can I fix this?