Hopefully this will be a useful post for anyone running into a similar problem. I probably needed to sleep on this, but when you said go through and look for motion menus it occurred to me that motion includes sound. I wasn't using video for menus, but I did have a couple of menus pointing to video files that it was using for audio. It never occurred to me that it would push the space limits.
Once I replaced it with a different audio file the problem went away. Now I see what they mean by the menu size as one of the mov files was fairly large. So what I was linking to wasn't the issue, rather it was the capacity of the menu in terms of total audio and video associated to it. Not knowing what's under the covers of Encore makes it difficult to understand what it's actually doing with assets.
In the future that will be the first place I look. That was also the reason the video asset wouldn't delete so that problem solved itself..
Thanks for the input.
