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Hi, Drew.
You asked this in support, too, but I'll answer here as well: there seems to be a new problem in Tiger 10.4.1 that shows up when we create an image. Instead, try using the FAQ entry "How do I update an image?" to create an image with Disk Utility, then back up to that directly. That should work until we figure out what, exactly, is going on.
Sorry for the trouble: Tiger's definitely having some teething pains...
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--Dave Nanian
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