DVDAuthorGUI
Creating Chapters
You may want to create chapters for a longer film so that viewers can skip forward and back to certain parts of the film without having to scrub fastforward throught the whole film. Also if your film is episodic, by creating chapters you can link to different parts of the film from the menu.
To add chapter first select the Video title you want to add the chapter to in the main menu.
Then click on the add chapters button
The Chapters window then appears
If you know the times that you want the chapters to appear in your video file, perhaps you have made a note of them when playing it in VLC, you can enter them directly by clicking in the main white window and altering the time. The next still shows a chapter time of 1 minute 30 seconds.
To add another chapter then press return and add another line in the same format.
If this manual method doesn't suit you then you can set the times of the chapters using the visual editor.
In the chapters window press the visual editor button 
Click OK when the error message appears.
Use this interface to set you chapter times by playing the video and clicking on the add chapter button at the point in the video you wish to add a chapter.
If this features is unstable you may want to play the video file in VLC , pause the video when you want to add a chapter and make a note of the time.