One VOB file to AVI chapters help

I did a little test on AVS converter with Invader Zim.
I was able to convert it to AVI.
Since it is only one VOB File for the whole DVD, how do i break up the episodes instead of having one file with all the episodes in it.

 

If you just want to chop up a single VOB file, drag it onto Mpeg2Cut2.
Use the slider and the [ ] buttons to select the clip, then save it.

http://www.videohelp.com/tools/Mpg2Cut2