Creating chapters for videos in the iphone
Yes, it's possible to create chapters (similar to regular chapters on a DVD) to videos in your iphone. The trick is to save a standard QuickTime movie with embedded Chapter markers. If you're not sure how to embed chapter markers into a sequence, click on the link.
Do not use the standard iPhone export setting within QuickTime Conversion because it will not allow you to save the embedded chapter markers.
Take the QuickTime movie you've exported into Apple Compressor. Don't worry, Apple Compressor will maintain the meta-data for the chapter markers. 
Within Apple Compressor use the H.264 Preset for iPod and iPhone video. That's it! You'll now have embedded chapter points within your video clip on the iPhone.
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