Step2 [Select your output format]
Press the Step 2 Button.
Select your media type ex: DVD or svcd.
If you selected dvd as output then :
Select chapter every 5 minutes or put an chapterlist manuall like : 0,300,1000,1500 (values in seconds). Do not put over 60 chapters. The rest leave it as the photo shows ...

Notice that if you have selected svcd/vcd you can add only one audiostream (by default the audiostreams two and three at step 1 will become 'None').

Step3 [Select your encoder]
Press the Step 3 Button.
Use quenc as default encoder . This encoder is good for vcd/svcd/DVD.
An really good alternative is hcenc for svcd/dvd only !
Some good settings are indicated on the photo below.

Menu :

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