For those of you that are interested in this topic, I should mention how I create the DMG:
hdiutil create XXX.dmg -volname "YYY" -fs HFS+ -srcfolder "ZZZ"
where
XXX == disk image file name (duh!)
YYY == window title displayed when DMG is opened
ZZZ == Path to a folder containing the files that will be copied into the DMG