I am trying to create several markers along a route from google maps directions. I have already looked into waypoints as an option but based on my understanding of the docum
As Andrew told waypoints wouldn't do it.
You don't have predefined points for the route (like the example), so what you can do is:
A direction consists of points defined by route->overview_path, what defines the polyline for the route.
So you may walk this path, calculate the distance between two path-points using google.maps.geometry.spherical.computeDistanceBetween() and create the marker when the desired distance has been reached.
Here is an implementation of the suggestion: http://jsfiddle.net/doktormolle/eNzFb/
Please Note: this answer is obsolete. You better use the built-in IconSequence instead.