there's a paid app in the mac app store (i have os x lion) called audiobook builder. It's only 10 dollars, but the interface is really simple and makes things easy.
On a Mac you definitely want Audiobook Builder; Chapter and Verse is PC software, so I've been told. ABB $10, but it's by far the best software available for the purpose. I've been using it for years and years and have compiled over 1500 podbooks. I totally swear by it!
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http://lodensoftware.com/chapter-and-verse/
I converted the files into AAC ones using iTunes & then used the software to make the podbook.
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