34GB File Vault sparse image not mounting

Hi there,
I have an ibook G4, OS X 10.4.11, Capacity 55.77 GB, Available 5.53 GB
I've had my home folder (34.69 GB) encrypted with File Vault for about 5 years. A few weeks ago I had to hard shut down when Safari crashed. Upon restart I got the scary "unable to login as this user at this time". I was able to create a new user account. I scoured the internet and followed apple instructions: http://support.apple.com/kb/HT2631
I can see my old sparse image file. But when I get to step 18 above, I get the message: The following disk images failed to mount, lockedouthome.sparseimage, reason--> input/output error
When I try to back up the sparse image to an external hard drive, I get the message: The finder cannot complete the operation because some data in "lockedouthome.sparseimage" could not be read or written.
Is there anything else I can possibly do before I trash the home folder and start over? I have backups of my itunes and iphoto library, but never got around to backing up the Word documents and web archives that are career related. Please help! I hate to trash it, when I can see the file sitting right there with all my stuff looking like it's still inside (34 GB).
Thanks,
unaware filevaulter

I completely understand the money issue myself.
But DW is your best cheapest hope of any recovery, in fact I do not even buy a new Mac/OS until DW supports it, that's no guarantee it wiil work though.
Could you please explain what you mean by "if you don't have an external drive to boot from" in regards to using the Disk Warrior CD or DVD?
I don't know how you were backing up, nor whether these drives are bootable, but in this day & age it pays to have a bootable Clone of your drive, DW & other Apps can be run from say an external drive to repair your Internal drive... since you cannot repair the HD you're booted from, you need either another boot drive, or a CD/DVD to boot from.
I use FW drives on most of my Networks and use Tri-Backup...
http://www.tri-edre.com/english/index.html
Can't say enough good about Tri-Backup.
Get carbon copy cloner to make an exact copy of your old HD to the New one...
http://www.bombich.com/software/ccc.html
Or SuperDuper...
http://www.shirt-pocket.com/SuperDuper/
Or the most expensive one & my favorite, Tri-Backup...
http://www.tri-edre.com/english/tribackup.html

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    Although the article discusses Panther and is dated 12/19/2003, the concepts as they apply Tiger have not changed.
    The cautions and warnings are prominent in any of the Apple Knowledge Base articles referring to the use of FileVault. If a user is unfamiliar with any aspect of FileVault, it should not in my opinion be activated.
    As good as FileVault is in protecting your sensitive data, it also presents the danger of locking up your files in an irretrievable ball of one's and zero's. Backups are critical. You must ensure that you have a comprehensive backup plan. Backup and Recovery, by Dr. Smoke is a fine example of what you need to consider.
    ;~)

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            System.out.println("Invalid deposit amount.");
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