Creating (S)VCD's with chapters (THIS GUIDE REQUIRES READING!)
I wrote this guide in an attempt to explain how to make a VCD/SVCD with chapters. This guide will show you how to do that but explanation about how to get the exact chapter points on the second CD is rather complicated. I have tried my best to explain how to do it and hopefully it will be of some help to you.
You will need the following software for this guide:
Before starting, you need to check if ASPI is installed on your computer. If it isn't, VCDEasy will not burn your CD. To check if you have ASPI installed, use the ASPICheck program. If you don't have it installed, then you need to download ForceASPI and install it.
Step 1
Start ChpaterXtractor

Now you want to open the IFO file belonging to the main movie to re-create the chapters from the DVD movie. When you open the IFO file, you'll see some stuff scroll by the screen.
Step 2

Go to the Format tab and change the "Presets" setting to SVCD (hh:mm:ss:cc). Then highlight all the chapters and copy it by right clicking and selecting copy. Now you can't copy all chapters because your (S)VCD movie will most likely be on two CD's. So if you want the same chapter structure from the DVD, you'll have to cut your movie at the end of any chapter you chose. So lets say you cut the movie at the end of chapter 13, you would only copy chapters 1 to 12 for the first disc.
For your second disc, you would copy the remaining chapters but you'll have to make some changes to the times of each chapter using Notepad. In the diagram below, the chapter list on the top is from the DVD. The chapter list on shown on the bottom is the chapter list you should have after doing some calculations. So to change the time for the first chapter, you would take the time of chapter 14 and 13 and subtract them. This is the start time of the first chapter. To find out the start time of the second chapter, you take the time of chapter 15 and subtract it from the time of chapter 14 and you take the result of that and add it to the time of your first chapter. See the example below for an example. Keep doing this for the rest of the chapters. When your done, save the txt document.

Step 3
Start VCDEasy

Select Vcd 2.0 as the videoCD type and make sure you click the burn button. You can leave the volume label the way it is or rename it to whatever you want. Also select your CD recorder from the drop down list. Then select where the bin/cue files are going to be saved and drag your mpg file to the MPEG1 video/picture files window.
Step 4
Go to the Chapters tab
This is where you import the chapters from the DVD. So copy the chapters you want and right click in the boxed window on the left and select "Past ChapterXtractor (RAW data). The window shown below should pop up.

Click the button on the bottom to import the chapters and press ok. The chapters for your second disc would be the one's you edited earlier in the txt document. So open the txt document and copy the chapters and import them.
Step 5
Go to the Settings menu

In the (s)vcd Player tab, make sure select either PAL or NTSC depending on where you live. If you created a SVCD and you know your SVCD/DVD player can play them, then check the box to use MPEGAV/ENTRYSVD instead of MPEG2/ENTRYVCD. Set everything else up as shown in the picture.
Step 6
Go to the CDRDAO tab

Here you can select your CD recorder and the driver for it. If you're not sure what driver to use, then click on the more information link to find out the proper driver for you CD recorder.
Now go back to the main menu by pressing the (S)VCD button on the left and press the GO button on the bottom and wait for you CD to finish burning.