I have a DVD ripped onto HDD to a VIDEO_TS folder. The content is music videos. What is the best tool and and method/guide to convert it into single mkv (x264)? Also if possible I want set "chapters" so that if I press >> (Next) on the remote, it goes to the next song.
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Shoot, missed the part where you said you wanted h264. MakeMkV won't re-encode to H264 for you, it will simply put the existing mpeg2 of the dvd into an mkv file with no compression.
So, if you absolutely need H264, then VidCoder, Handbrake, Ripbot264 or other encoding programs that use the X264 encoder will work for you.