[AAR.oner]

i use DVDSP, so i can't give specific keystrokes, but...basically

Import the mpeg2 into DVDArch

drag it yer timeline, then move to each spot in the timeline where you want to create a chapter point, and select Create chapter marker from yer options in command bar...be sure to set yer first chapter marker at the beginning of the video

you then continue as you normally would regarding menu buttons, pointing the buttons to the proper place, etc...