I recommend against using a DMG on the LaCie -- write directly to it so you can boot from it and verify the backup. As you said, name it "Macintosh HD" if that's the internal drive name, too.
It'll prompt to replace the files on the LaCie: that's right, it's going to erase it, so make sure there's nothing on there you want to keep!
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--Dave Nanian
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