Here's info that should give you ideas.
But mediajf's suggestion may prove a better route. An ISO file will open as a separate drive in Windows.
http://help.nchsoftware.com/help/en/videopad/win/finalise_dvdchapters.html
The VOB iso file can then be launched In a capable player and chapters chosen. Here's an example via the right-click menu in the free MPC-BE.

If MPC-BE doesn't open automatically, listing the above options, launch it manually. Click FILE|OPEN DVD and select the drive that contains the ISO.
Click SELECT FOLDER.
