Thanks for the clarification. Formats does not specifically say what to do on the first page of text in the new volume. You are correct--on the contents page itself in Vol. 2, insert cont. after the Chapter 1 entry. Most transcribers also insert (cont.) after the chapter heading on the first page of text in the new volume as well. I agree with that, and that is my suggestion for this question.
Reminder--the NEW 2011 Formats Guidelines is available for free download from the BANA website. http://www.brailleauthority.org
It is optional to use the new guidelines now for new transcriptions only. You may continue to use the old guidelines at this time if you wish. After Jan. 1, 2013,it is REQUIRED to use the new guidelines for any transcription srarted after that date.