No. You must make , from the input mpeg, the cue/bin with VCDEasy (or extract the mpeg from that cue/bin, also with e.g. VCDGear, and make a different image 'with chapters' with VCDEasy). I too, tried different ways to do this. But with no avail...
Yes, starting from an already edited mpeg (<830 MB), there's a menu screen ('chapters') who inserts chapers in the mpeg when you author the (S)VCD. It's rather trivial, its only drawback it that you must purchase VCDEasy to make a fully working (S)VCD from any movie (since v1.1. VCDEasy no more free, now the trial version as big limitations...). You can D/L the trial verion from http://www.vcdeasy.org/ . There's also plenty of guides available, in the VCDEasy's site: http://www.vcdeasy.org/modules.php?name=_Guides