You can't use Nero to have chapters. By the way, SVCD chapters are technically called "entry points". You have to use either the old I-Author program which is no longer being sold but might be available on some cracker/warez sites, or you have to use VCDeasy (
http://www.vcdeasy.org) to have entry points. Perhaps some commercial products will also do this, I don't know. Nero does not allow for entry points, although it is possible to have them if you make a BIN/CUE image and simply burn it with Nero. If you drag and drop your MPEG-2 file into Nero's SVCD template, it doesn't support entry points.