DropDMG is the easiest way to create Mac OS X disk images. Just drag and drop a folder or file, and DropDMG will create an image in .dmg, .img, or .smi format—or a Tar, Zip, or StuffIt archive. Or, you can drag an existing image or archive file onto DropDMG to easily convert it to any of the other supported formats.
DropDMG supports encryption, segmented images, and custom icons, and it can create images with rich-text license agreements in multiple languages. There are many time-saving features such as temporary preferences when you hold down Option, remembering recent folders, configurations to keep track of popular combinations of settings, and the ability to create more than one image or archive at a time. All the options are available from Automator, AppleScript, and from the dropdmg command-line tool.