I have this same exact problem and its driving me nuts!! The chapters just disapear and when ever u click on one or click next it just goes right back to the begining like you said. Except i have not been doing anthing wrong. My fies have been demuxed and made into mpv2 video and AC3 audio like usual. I have no idea why its doing this. Aghhhh

Did anyone else have this problem and find a solution? I cant even use dvd lab pro because of this stupid problem. Im totally stumped.