Id like to remove all the commercials without having to output 1 chunk at a time, like I can in virtualdub

I don"t know what you are talking about the "new" cut feature,the cut feature is the same as in the last version and there is nothing new about it,the only way to edit out comercials is to do it in pieces,or do it before hand with virtua dub and then encode.....

The 'New' cut feature is new to 2.54 and wasn't in any of the other versions.
To use the feature as you say go to Setting>Advanced and double click the 'source range' filter.
Using the slider and the the 'start' and 'end' controls select the part of the movie you wish to cut and then click the 'Cut editing' button and choose 'Cut currently selected area'.
Repeat the above steps for each part you wish to cut out then click 'OK' and your movie will have the selected cuts removed from the movie.
You can check the result before you encode by using the 'Preview' feature, go to File>Preview.

ASHY

Yeah that New cut edit feature rocks!! I can cut scenes from DVD in d2v files before I encode that way I can reduce the file size by just killing credits or blank spots in the movie. TMPGenc just keeps getting better good job Hori. ~NewtronX

That is a new "source range "feature, there is nothing new with the "merge & cut"..........

Who mentioned Merge&cut?
The question was the New cut edit feature which is a new feature located with the source range filter and is indeed used for cutting and editing.

It even even states it as a new cut and edit feature in the version history on the download page.

ASHY

I thinking cut as in merge and cut when i was answering the Q,just an oversight....