BIGuy:It does automatically create the Chapters, however you can force it to create them by breaking up your video into chapters using Wiidows Movie Maker and saving off each chapter as its own project. Add each project to DVD Maker and it will create the chapters for each video segment. Not sure if it is worth it.
Yowsers that's long winded and painful!
I always have to compare the features of this to what I used to use, which was the OEM version of Nero Vision Express... and that had the ability right there in the DVD creation app to trim, alter etc. your video, and just whack on chapter stops... It also gave nice configurability to how the app auto detected chapters if you prefered to let it do it itself.