With the latest release of HandBrake, you can now quickly and easily add Chapter markers in your movies in FrontRow. Prior to the latest HandBrake adding Chapter markers would require some extensive work within Quicktime, and another export to a MOV file.

1. Handbrake Setup
With v0.8.5, a new set of options appear. I've heard the bst preset is the AppleTV preset. It is a MP4/AAC file @ 2500 kbps. Make any other video and audio preferences you would like. Be sure to select the 'Create Chapter Markers'



2. Change File Extension
By default MP4 files are not identified with the ability to have chapter markers. Change the file extension to .m4v. Without doing this, your chapter markers won't work in FrontRow, QuickTime or iTunes.



3. Add to FrontRow
After the file has been encoded, add it to your ~movies folder or to iTunes. This will make the m4v movie accessable via FrontRow, and that is basically it. Instead of jumping 30 sec forward or back, your movie will jump to the next chapter marker, just like a DVD.

This process should work for movies sent over to your AppleTV, but it would be great to get a confirmation.