@lahratla
If you meant DVD like menus, ConvertXtoDVD (not free) is the one u want. Everything's customable & pretty simple. Even "Nero" will let you do that but results are not that good as Convertxtodvd.
Video will be encoded to dvd format (mpeg-2) not much different than the crappy xvid codec unless you watch these in hdtv's.
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add some text titles in each video,
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Didn't understand this part. You mean subtitles??
Anyway, its not possible to do the things you want without re-encoding.