I think I have heard that it is possible to put markers in a Vegas timeline that you can choose as chapterpoints. Is this correct, and if so, how do you do this?
Yes. Place normal markers (use the M key) on the Vegas timeline wherever you want chapter breaks to occur. When you render make sure you check the option for "save markers". This will create an additional .sfl file with the same name as the .mpg or .ac3 file. DVDA will find this file automatically and use it to create the chapter markers.