I haver used Rempeg2 to reduce my movies but have since moved to CCE and have enjoyed the fantastic looking result. I have followed the guides and have done 7 movies with CCE but still have not been able to get the chapters to work in Spruceup. Is it possible? Again, I have followed the guides for IFO and then the Robshot method to the "T". Any ideas on what I can try to fix this? Thanks.

Do the chapters in SpruceUp itself 

.... it is easier. Doing the chapters in CCE does not work for me especially when I have to re-mux the m2v and 5.1 ac3 streams in SpruceUp. I do my own chapters in SpruceUp. After you have 'added' the media asset in SpruceUp, right click on the asset (or clip), and select clip properties. You get a window where you can move a slider bar to various points in the movie and use the flag button to set chapter points. You can even select a different frame for a chapter point by dragging the 'eye' over the slider bar - useful when you want to show a different picture for say chapter 1 which otherwise could be a blank screen. Of course, you don't get the original chapter points but I use chapter points mainly to get quickly to a few specific points in the movie - to get around FF through a lot of the movie. Hope this works for you.

Thanks for the quick reply and detailed instructions. I will give this a try, seems easy enough to me. thanks,....