Yes, that's generally the preferred way to create "text" menus. The only reason for creating an image just to display text is to prevent someone from easily copying text. Using an image also makes creating links to the menu more complex since it may require a technique called image mapping. In other words, you must mark different parts of the image for different hyperlinks. Make sense? Also, why make your web page file unnecessarily large by using an image where text will suffice? The word, text, takes four bytes if coded as text. If it's displayed within an image, it will take many more bytes.
No offense, but the fact you're asking these questions indicates you have a lot to learn about developing web pages. Have you given some thought to how you're going to learn what you need to know?
