I want to create an image from the contents of a directory(say "/home/sid/folder/"). I then want to use /dev/loop0, format it to ext3 format. Finally associate the image i just created with loop0 and mount it. How do I do this?
Create your image file of the size you want:
dd if=/dev/zero of=./your.img bz=1M count=<number of megabytes you want>
Format it
mkfs.ext3 ./your.img
(Recheck that command before running it, do read what is printed out.)
Mount it:
mount -o loop ./your.img /some/mount/point
And you're done. Don't forget to unmount before you copy/send that image file anywhere.