BINChunker requires a valid cuesheet. Try CDmage instead. After you have the image file open in CDmage, right click on the right pane where it lists the data track and do an Extract Track As..., choose mode1/2048, choose destination, and extract. When done, just rename the extracted file to *.ISO.
i have to do this too, and i downloaded cd mage, and i dont see "extract track as..." when i right click anywhere. I can extract individual files, but it wont let me change them from 2532 to 2048 either. should i download a different version (i have version 188.8.131.52)? thanks