DropDMG 2.8 is now available. This is a free update that includes the following enhancements:

• Improved compatibility with pre-release versions of Mac OS X 10.5.
• Passphrases are now set in a separate dialog rather than directly in the preferences window, and this has been combined with the old Confirm Passphrase feature. This makes it easier to verify a passphrase when you enter it.
• DropDMG now accesses the keychain only when necessary, so it won’t prompt you to unlock the keychain if you’re creating an image that doesn’t have a passphrase.
• The Software Update checker now works behind an HTTP proxy, and the auto-updater is compatible with FileVault.
• Reorganized the manual and added Burning Backups of CDs/DVDs and Transferring Files Securely sections.
• When creating an image of an application or installer package, DropDMG no longer includes file extension in the image name.
• Worked around -39 error from hdiutil when converting very large images with lots of files.
• Auto-open is now off by default, since it slows down image creation, and on Mac OS X 10.4 and later the OS will auto-mount images automatically, anyway.
• Fixed bug where Burn Folder/File… treated packages as folders rather than as files.
• Better recovery from -35 errors when doing image post-processing.
• Fixed bugs in enabling and disabling Always Run With Root Access menu command.
• Fixed bug where the Services menu commands could appear in French if you were using a British English system.
• Fixed bug remembering a recent folder that had a slash in its name.
• Fixed error when initiating a burn via AppleScript.
• Fixed small memory leak.
• Better names for temporary folders.
• Added keyboard shortcut for Hide Others.
• Added Spanish localization.

For more information, please see the DropDMG Manual.