Trying to make a bootable iso/dmg?

Okay, so here's my problem. I have an iMac which I just upgraded to Leopard. Before doing this, I made a backup with Carbon Copy Cloner. So I have a folder with all the files of the system (Applications, Library, System, Users, etc.). Ultimately, I would like to take this folder and make it an operating system to run as a virtual machine or on a separate partition. Do I have to create an .iso or .dmg out of it? And if so, how would I do it correctly?

Thank you very much, your help is really appreciated!

Open up disk utility

Select File > New > Disk image from folder

That will create a DMG file

If later you find you need an ISO instead then open Termial and type


hdiutil convert /path/to/filename.dmg -format UDTO -o /path/to/savefile.iso

Where the bold bits are the path to your DMG and the path to the new ISO file

So this DMG will be fully bootable and everything?