Anyone who uses neoDVD (and neoDVD Plus) knows that this software has a serious short fall when it comes to number of chapters: you can only set 5 within a video clip.
I happen to figure out a work around, I want to share with others:
1) using neoDVD Plus, encode your AVI file to DVD content, let say the content is in d:\MYVIDEO\VIDEO_TS folder
2) use VOBEdit and go to that folder, demux the VOB files (check whole title set) to M2V video and AC3 audio (ex: myvideo.m2v, myvideo.ac3)
3) determine chapter point by playing the AVI file (using neoDVD) and jog down the HH:MM:SS.FF of the places you want to mark as chapter points. You can jog down on a piece of paper, or enter into a TEXT file using Notepad. Convert these time entries to frame numbers, saved it in a text file. [I will write a little utility to convert the file containing HH:MM:SS.FF to another file containing frame numbers with NTSC / PAL consideration].
4) use IFOEdit to author a DVD with myvideo.m2v, myvideo.ac3 and import the chapter points from the text file obtained in step #3 above
5) DONE: you get a new folder which can be burned to DVD using Nero for example.

NOTE: you will loose the menu generated by neoDVD [Plus] using this method. Who care about the menu if you can only get to 5 chapter points and you need lot more of them, right ?