Welcome to the forum, Clegg
From my experience of reviewing the LVW-1105HC+ (very similar to the LVW-1107HC1), this DVD recorder's editing features are very limited. Unfortunately, this model has only two ways of adding chapters to DVD - automatic insertion and manual chapter inserting while recording.
There are two ways to go about recording tracks to DVD - by Title and by Chapter. Each title is given a different thumbnail and name in the menu, where as one title can have several chapters. To access a given chapter, you need to go into the title first and navigate to the desired chapter using the 'Next Track' button on the remote.
I would recommend recording each song as a separate title as this means that one just has to choose the song to play from the menu. To do this, have your DVD player ready to start playing the title, press 'Record' on your DVD recorder and as soon as the on-screen timer clocks to 1 second, press play on your DVD player. Like a VCR, the DVD recorder can take a few seconds to begin recording, so once you see that the timer begins counting, this clearly indicates that the recording has started. If the source is live with several seconds of cheering, clapping, etc. prior to the song, then you should be able to press record (on your record) and play (on your DVD player) at about the same time. Once the title playing back finishes, press 'Stop' on your DVD recorder.
If you prefer to record by chapter, you will end up with a single title in the menu and each song will be selectable by navigating using the 'Next' and 'Previous' track buttons, much like navigating through an Audio-CD. Prepare to start the recording as I mentioned above. Once the title playing back finishes, press the 'Pause'. Prepare the next title for playing, unpause the recording and immediately press the 'EDIT' button to insert a new chapter and start the playback on your DVD player. I'm not sure if you can insert a chapter while the DVD recorder is still being paused as I haven't tried this. Once you finish recording the last title, finally press 'Stop'.
On the Lite-On HDD models (such as the LVW-5045), it is possible to record the full source in one go to its hard drive and then either edit the recording into individual chapters or split it up into separate titles on its hard drive. However, this functionality is not available with any of Lite-On's DVD-only recorders as far as I'm aware of. :doh: