I'm not familiar with various file formats.
Is there a way to take a video, add your markers / split clips and then output to chapters within an MPG or AVI that can be viewed / skipped / etc in media player classic or other programs?
I have a 20 minute video
I would like to make 4x5 minute chapters
I dont want a DVD style menu
I want to make it an AVI or MPG
While watching the video in media player classic, I would like to push "Next" and have it skip to the next chapter
The closest is the WebDVD Share option. It creates a web site with DVD-like menus.
But you can't create a WMV or MOV file with menus and chapters.
Other than the Web DVD, the only format, that I know of, that allows one to do what you outline, would be Flash (sure that HTML5 will do it too - but that will be just a variation of the WebDVD), but to get that interactivity, one would need to do the final editing/programing in a program like Adobe Flash Pro. The interactivity would come from on-screen Buttons, rather than a function in VLC Player, or similar.
True Video is linear by nature, and the vast majority of players see it only as such. It is not until one has authored that Video, such as a DVD, BD or WebDVD, that one is able to control that linear nature. Otherwise, the viewer is relegated to but a few controls, like Rewind, Rewind to Start, Fast Forward or FF to End. I can't even think of a software player, that will allow one to directly input a TimeCode, to go to a specific spot in the file.