Hi I am still using a 3G Ipod so realise I am probably in a minority, but I was interested to read that you state that the 3G won't show chapter markers. This is not entirely true!
For quite some time I did not think that it was possible for my ipod to display audiobooks in the audiobooks menu, so my book cds had been imported as normal. Once I discovered that they could be moved into the audiobook section I used the "join together" applescript (which uses the apple chapter tool??) and the "make bookmarkable" script , both from doug's applescripts site. All the audiobooks created in this way DO show chaptermarkers on my 3G ipod when I press the button in the scroll wheel. If you were able to implement this in someway I would be very happy. ABB is a very useful product
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