Does Nero Recode do mpeg-4 with chapter markers?

I am beginning to encode some of my backups to mpeg-4. The reason being that I can fit a 2 hour movie on an 80 minute CD with good enough quality.

I read somewhere that Nero Recode can maintain the chapters of a DVD however, I cannot find this option. Is this only in the full version? I only looked at the complimentary Edition. The reason being that I cannot install the full version of Nero at the moment.

I would like to know, because I can also re-encode the DVDs to mpeg-4 using Sony Vegas which seems to be a bit faster, but I know that I cannot keep the chapter points or subtitles with that one.

Also, does anyone know if there is some type of authoring program for mpeg-4, for example an HD-DVD authoring program available or some way to make menus for these movies?