Backing up using DMGs

Joined
Jan 14, 2007
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Your Mac's Specs
1.67ghz powerbook G4, 1GB RAM, 100GB HD.
Im trying to back up my hard drive by creating a copy of it as a .dmg file (good compression rate). I tried to use disk utility to do this, but it says that the resource is being used (duh :S). Is there any way to do this ? I dont seem to be able to access anything that isnt a drive from disk utility. Should I backup using .tar and .zip ?

thanks
 

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