I have several mini videos I want to display on a list or thumbnail and then with a checkbox or yes button be able to add them to a play list and allow it to then play continually....Then by going back to the menu and choosing different videos next time.
any one see a tutorial for this or know how to do this?

I have a feeling that this not available in the "DVD specs", but you could try this with multiple menus and either chapter of regular playlists.

Have your first menu just have the buttons for your varioous scenes, say scenes 1-4.
Then if you selected scene 2, for example, with autoactivate you would go to a second menu which would have all the combiinations with scene 2 in it (2, 2,3, and 2,3,4) and have each of those buttons linked to the appropriate play list. If my math is correct (always questionable), then you would need a main menu and four others.

I would run this by the guys over at the Adobe Encore forum-Menu subforum
http://www.adobeforums.com/webx/.3bbe24a2/
to see if they have any ideas.
I'm not sure whether the much more expensive programs like Scenariast do this, but that's out of my price range.
I'd be interested to know if that's helpful.
John Rich