Version 1.1 of DropDMG is now available.

This is a free update that includes the following changes:

• Supports ADC and NDIF compression for compatibility with Mac OS 10.0.x and Mac OS 9, respectively.
• Supports encrypted compressed images in the zlib and ADC formats.
• Optionally detects packages so that you end up with a mounted image containing the package instead of a mounted image that the Finder thinks is a package.
• Copies locked files to images (instead of stopping with an access error).
• Images’ logical sizes are smaller; this should slightly reduce their physical sizes and reduce mount times.
• Accepts drops of all file types (including packages); if DropDMG doesn’t know how to handle a dropped file it will just ignore it.
• The Make Image From Folder… menu command lets you choose packages and subfolders of packages (instead of just vanilla folders).
• Minor UI tweaks.

For more information, please see the DropDMG Manual.