For what it's worth, I gave the Apple version of 0.4.0-RC2 a quick run-through and all the chapter splitting things seemed to be resolved, including IIRC the split button to divide one chapter into two. I have not tried the Win version.
Also FWIW, yesterday morning I cloned the sigil repository and built Sigil on Ubuntu and on Debian. On both, most everything seemed to work except that the program hangs when the "generate toc" button is pressed. I realize that the cloned repository probably contained several commits beyond RC2, so I don't know how meaningful my results are. To say nothing of the issue of whether I built it correctly or not (though a build of 0.3.4 worked fine).
I only mention it since you said you've been messing with the TOC-building code, so possibly something got broken.
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