Prior to the release of Mac OS X Server 1.0- 2, there was a issue that prevented MacOS.app from initializing a disk image file created by the createimage tool. A new release of MacOS.app, which corrects this issue, is included with Mac OS X Server 1.0- 2.
All Mac OS X Server customers should update to Mac OS X Server 1.0-2. The software can be found on Apple's Software Updates Web site at:
http://www.apple.com/swupdates/ .