IMG files used in MAC OS Classic are replaced by DMG file format. Mac Operating system treats these files as the real disk and can be burnt to CD, created with disk copy or mounted as a normal volume.
The DMG file contains the raw data that can be compressed and encrypted. One can easily mount these DMG files into virtual drive or one can use Apple Disk Utility software to open and view the content of DMG file format. DMG file extension is one of the most used disk image file designed to distribute applications and files among the Apple PCs.