I'm looking for an example of how to move from the start screen to an options screen as I don't think I'm doing it right currently.

So far I have a 2 functions: screenStart() and screenOptions()

in main.lua I call screenStart() which displays several buttons and an image.

One of the buttons has onRelease = buttonOptionsRelease which triggers this code

local buttonOptionsRelease = function (event)
screenOptions()
end

the screenOptions() functions sets up a screen with its own background and buttons.

Is this correct? or is there perhaps some example code I could look at that demonstrates how to do this better ?

use the director module, its dont get easier than this)
you can learn about it here: learningcorona.com

I use Storyboard. seems to work ok.

Wow, that a great link learningcorona.com - tons of stuff! Big thanks!

Great page indeed nice demonstrate [http://www.templatewordpress.org templates]