WinAVI
"http://www.winavi.com/en/video-converter/video-converter.htm"
OR
ConvertXToDVD 2
"http://www.vso-software.fr/products/convert_x_to_dvd/"
Both will convert to dvd and put chapter points in.
EDIT
after you have converted to dvd/mpeg2
Then use this if you want Your DVD to have main
menu and chapters.
This as its own menu templates and is easy.
TMPGEnc DVD Author 1.6
"http://tmpgenc.pegasys-inc.com/en/download/tda16.html"
