Any gotchas for encrypted disk images?

I am about to set up e-bills and e-statements at various banks and credit cards and wanted to check a couple of things before doing something that may end up being bad
The assumption I am going with, is I will create an encrypted disk image to store all the PDF's.
1. Is that the right thing to do? Or is there a better way to keep the data secure?
2. If I do so, what is the backup impact? Can I simply set up a task to copy and paste the entire disk image to my external drive?
3. If I want to open the disk image on another computer, can I? How will it authenticate the user/pass on a different computer?
4. I can backup an encrypted disk image to a FAT-formatted external drive?
5. And finally, I have read disclaimers that if I forget the password the data is lost irretrievably. But also, that the password is stored in keychain. So if the password is stored in keychain, the worst-case scenario can only happen if I forget the master password, right? I don't need to truly remember the password to the disk image necessarily, right?

baltwo wrote:
Your profile info indicates that you're running Tiger. If so, post to those forums. If you're running Leopard, update your profile info. What are you trying to protect and from who? Is your computer secure?
IIRC, encrypted disk image passwords are independent from Keychain Access. So if you forget it, then you're hosed. BTW, that's the major failing with encrypted anything. If you forget the password, you're hosed. If the disk image gets corrupted, it's useless with or without the password. Anything stored in an encrypted disk image needs to be backed up in an unencrypted state and stored in some kind of physical thing like a safe. Methinks your a bit paranoid. Disable auto-login, use high-level passwords (that you remember), don't enable the root user account or activate a master password, and you should be secured enough.
I updated the profile. I am running Leopard. So this is the correct forum.
What am I trying to protect? I thought I put it in the first line - statements from banks and credit cards.
From whom? From unwanted entities who may get access to my computer, in any way.
I didn't get the part about the safe. Can I or can I not back up an encrypted disk image to an external drive "as is"? What about possibly opening it up on another computer? And how about putting it on a FAT-formatted disk? I repeat my original questions, but for a reason - they seem to have not been answered.
I do not have auto-login, and I remember my strong login password. I don't have my root account enabled. Under this scenario you think my data is going to be secure? What about if someone were to get control of my computer? Forgive me on this one, I am a switcher so there is a general paranoia about such things which I would like to clarify before reorganizing my life.

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    kevin:~ kevin$ hdiutil attach -debug /Volumes/kevin/busted.dmg calling DIHLDiskImageAttach with
    agent: hdiutil
    drive-options:
    debug: true
    image-options:
    verbose: false
    quiet: false
    main-url: /Volumes/kevin/busted.dmg
    2008-05-12 18:11:17.015 hdiutil[1745:1c03] using helper tool at "/System/Library/PrivateFrameworks/DiskImages.framework/Resources/diskimages-he lper".
    2008-05-12 18:11:17.040 hdiutil[1745:1c03] connectToFramework
    2008-05-12 18:11:17.141 hdiutil[1745:1c03] sendOperationToHelper: about to ask proxy to start operation
    status proc called: initialize
    2008-05-12 18:11:17.173 diskimages-helper[1747:1603] _imageOptions: {
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    2008-05-12 18:11:17.176 diskimages-helper[1747:1603] _driveOptions: {
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    "unmount-timeout" = 0;
    2008-05-12 18:11:17.178 diskimages-helper[1747:1603] DIHelperAttach: initializing framework
    DILoadDriver: checking for disk image driver...DILoadDriver: DI_kextExists() returned 0x00000000 (0)...DIIsInitialized: returning NO2008-05-12 18:11:17.188 diskimages-helper[1747:1603] -checkForPreviouslyAttachedImage: entry
    2008-05-12 18:11:17.189 diskimages-helper[1747:1603]
    file://localhost/Volumes/kevin/busted.dmg - (null) ((null), (null)). perm=0
    DIIsInitialized: returning YESDIBackingStoreNewWithCFURL: entry with
    file://localhost/Volumes/kevin/busted.dmg
    skip-permissions-check: true
    DIBackingStoreInstantiatorProbe: entry
    file://localhost/Volumes/kevin/busted.dmg
    skip-permissions-check: true
    DIBackingStoreInstantiatorProbe: probing interface 0 CBSDBackingStore
    CBSDBackingStore::newProbe score 100 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 1 CBundleBackingStore
    CBundleBackingStore::newProbe score -1000 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 2 CRAMBackingStore
    CRAMBackingStore::probe: scheme "file": not ram: or ramdisk: scheme.
    CRAMBackingStore::probe: score -1000 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 3 CCarbonBackingStore
    CCarbonBackingStore::newProbe: setting initial rval to +100
    CCarbonBackingStore::newProbe: has resource fork, +100
    CCarbonBackingStore::newProbe score 200 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 4 CDevBackingStore
    CDevBackingStore::newProbe: not /dev/disk or /dev/rdisk (/Volumes/kevin/busted.dmg).CDevBackingStore::newProbe score -1000 for
    DIBackingStoreInstantiatorProbe: probing interface 5 CCURLBackingStore
    CCURLBackingStore::probe: scheme is
    file
    CCURLBackingStore::probe: not recognized URL scheme.
    CCURLBackingStore::probe: score -1000 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 6 CVectoredBackingStore
    CVectoredBackingStore::newProbe not "vectored" scheme.
    CVectoredBackingStore::newProbe score -1000 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreNewWithCFURL: CCarbonBackingStore
    DIBackingStoreNewWithCFURL: instantiator returned 0
    DIBackingStoreNewWithCFURL: returning 0x00000000
    2008-05-12 18:11:17.190 diskimages-helper[1747:1603] -checkForPreviouslyAttachedImage: resolving file://localhost/Volumes/kevin/busted.dmg returned 0
    2008-05-12 18:11:17.191 diskimages-helper[1747:1603] -checkForPreviouslyAttachedImage: imageUID (
    "d234881039:i8914"
    ) shadowUID (null)
    *** testing:
    0: d234881039:i9111
    (null)
    (null)
    *** testing:
    0: d234881039:i9111
    (null)
    (null)
    *** testing:
    0: d234881039:i9111
    (null)
    (null)
    2008-05-12 18:11:17.194 diskimages-helper[1747:1603] DIHelperAttach: resolving disk image
    DIIsInitialized: returning YESDIIsInitialized: returning YESDIBackingStoreNewWithCFURL: entry with
    file://localhost/Volumes/kevin/busted.dmg
    enable-keychain: true
    image-path: /Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: entry
    file://localhost/Volumes/kevin/busted.dmg
    enable-keychain: true
    image-path: /Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 0 CBSDBackingStore
    CBSDBackingStore::newProbe score 100 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 1 CBundleBackingStore
    CBundleBackingStore::newProbe score -1000 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 2 CRAMBackingStore
    CRAMBackingStore::probe: scheme "file": not ram: or ramdisk: scheme.
    CRAMBackingStore::probe: score -1000 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 3 CCarbonBackingStore
    CCarbonBackingStore::newProbe: setting initial rval to +100
    CCarbonBackingStore::newProbe: has resource fork, +100
    CCarbonBackingStore::newProbe score 200 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 4 CDevBackingStore
    CDevBackingStore::newProbe: not /dev/disk or /dev/rdisk (/Volumes/kevin/busted.dmg).CDevBackingStore::newProbe score -1000 for
    DIBackingStoreInstantiatorProbe: probing interface 5 CCURLBackingStore
    CCURLBackingStore::probe: scheme is
    file
    CCURLBackingStore::probe: not recognized URL scheme.
    CCURLBackingStore::probe: score -1000 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreInstantiatorProbe: probing interface 6 CVectoredBackingStore
    CVectoredBackingStore::newProbe not "vectored" scheme.
    CVectoredBackingStore::newProbe score -1000 for file://localhost/Volumes/kevin/busted.dmg
    DIBackingStoreNewWithCFURL: CCarbonBackingStore
    opening /Volumes/kevin/busted.dmg setPermission 1723
    CBSDBackingStore::OpenLockFriendly: mapping flags 0x00000002 -> 0x00000026 (locks are MANDATORY)
    (RW lock acquired)
    closing /Volumes/kevin/busted.dmg setPermission 1731
    DIBackingStoreNewWithCFURL: instantiator returned 0
    DIBackingStoreNewWithCFURL: returning 0x00000000
    DIResolveURLToBackingStore: processing level 1 encodings.
    DIFileEncodingNewWithBackingStore: entry for encoding level 1
    DIFileEncodingInstantiatorProbe: entry for level 1
    enable-keychain: true
    image-path: /Volumes/kevin/busted.dmg
    DIFileEncodingInstantiatorProbe: probing level 1 interface 0 CMacBinaryEncoding
    CBSDBackingStore::openDataFork: about to open /Volumes/kevin/busted.dmg
    opening /Volumes/kevin/busted.dmg openDataFork 1904
    CBSDBackingStore::OpenLockFriendly: mapping flags 0x00000002 -> 0x00000026 (locks are MANDATORY)
    (RW lock acquired)
    closing 3 /Volumes/kevin/busted.dmg closeDataFork 1984
    00000000: 656e 6372 6364 7361 0000 0002 0000 0010 | encrcdsa........ |
    00000010: 0000 0005 8000 0001 0000 0100 0000 005b | ...............[ |
    00000020: 0000 00a0 548a 2877 86c1 4f17 877b cf66 | ....T.(w..O..{.f |
    00000030: beea 6066 0000 1000 0000 0002 780e 1734 | ..`f........x..4 |
    00000040: 0000 0000 0001 e000 0000 0001 0000 0001 | ................ |
    00000050: 0000 0000 0000 0060 0000 0000 0000 0268 | .......`.......h |
    00000060: 0000 0067 0000 0000 0000 03e8 0000 0014 | ...g............ |
    00000070: d369 cd83 75e8 bb7c 72e5 020d fdd3 68a9 | .i..u..|r.....h. |
    diskimages-helper: fileNameLength $0000006E
    diskimages-helper: resourceForkLength $60000000
    diskimages-helper: dataForkLength $00000000
    diskimages-helper: commentLength $00006700
    diskimages-helper: MacBinary III signature (0x00000000)
    diskimages-helper: header CRC $0000FDD3
    diskimages-helper: minimum decoder version $0000000D
    diskimages-helper: encoder version $00000002
    no MacBinary III signature - checking for MacBinary I or IIDIFileEncodingInstantiatorProbe: probing level 1 interface 1 CAppleSingleEncoding
    CBSDBackingStore::openDataFork: about to open /Volumes/kevin/busted.dmg
    opening /Volumes/kevin/busted.dmg openDataFork 1904
    CBSDBackingStore::OpenLockFriendly: mapping flags 0x00000002 -> 0x00000026 (locks are MANDATORY)
    (RW lock acquired)
    00000000: 7263 6e65 6173 6463 0000 0002 0000 0010 | rcneasdc........ |
    00000010: 0000 0005 8000 0001 0000 0100 0000 005b | ...............[ |
    00000020: 0000 00a0 548a .... .... .... .... .... | ....T........... |
    closing 3 /Volumes/kevin/busted.dmg closeDataFork 1984
    CAppleSingleEncoding::isAppleSingleFile loadAppleSingleHeader failed with error 22
    DIFileEncodingInstantiatorProbe: probing level 1 interface 2 CEncryptedEncoding
    CBSDBackingStore::openDataFork: about to open /Volumes/kevin/busted.dmg
    opening /Volumes/kevin/busted.dmg openDataFork 1904
    CBSDBackingStore::OpenLockFriendly: mapping flags 0x00000002 -> 0x00000026 (locks are MANDATORY)
    (RW lock acquired)
    CEncryptedEncoding::copyHeaderInformation: inBackingStore->openDataFork returned 0
    CEncryptedEncoding::copyHeaderInformation: inBackingStore->getDataForkLength (stub header) returned 0
    CEncryptedEncoding::copyHeaderInformation: backingStore data fork length is 0x0000000278100000 (10604249088)
    CEncryptedEncoding::copyHeaderInformation: reading V1 header from offset 0x00000002780FFB04 (10604247812)
    CEncryptedEncoding::copyHeaderInformation: inBackingStore->readDataFork (stub header) returned 0
    CEncryptedEncoding::copyHeaderInformation: not recognized as v1 header
    CEncryptedEncoding::copyHeaderInformation: reading V2 header from offset 0x0000000000000000 (0)
    CEncryptedEncoding::copyHeaderInformation: inBackingStore->readDataFork (stub header) returned 0
    CEncryptedEncoding::copyHeaderInformation: reading auth-entry count from offset 0x0000000000000048 (72)
    CEncryptedEncoding::copyHeaderInformation: inBackingStore->readDataFork (auth entry count) returned 0
    CEncryptedEncoding::copyHeaderInformation: reading auth table from offset 0x0000000000000048 (72)
    CEncryptedEncoding::copyHeaderInformation: inBackingStore->readDataFork (auth entry count) returned 0
    closing 3 /Volumes/kevin/busted.dmg closeDataFork 1984
    max-key-count: 1
    blocksize: 4096
    uuid: 548A2877-86C1-4F17-877B-CF66BEEA6066
    version: 2
    passphrase-count: 1
    private-key-count: 0
    CBSDBackingStore::openDataFork: about to open /Volumes/kevin/busted.dmg
    opening /Volumes/kevin/busted.dmg openDataFork 1904
    CBSDBackingStore::OpenLockFriendly: mapping flags 0x00000002 -> 0x00000026 (locks are MANDATORY)
    (RW lock acquired)
    closing 3 /Volumes/kevin/busted.dmg closeDataFork 1984
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