I was just playing with ARM image and found following things posting here so that it might help all..
1) bt5.img is a 4.8 GB monster not suitable for any vfat partition.
so to run it on my phone i did the oldest trick
dd if=/dev/zero of=bt.img seek=3500999999 bs=1 count=1
creating a new bt.img file of size 3.3 GB (in 1024) and 3.5 in 1000 counts
now next i need to create a copy of files
so mounting both img in two directories and running following command will help
bt5.img mounted in bt5
bt.img mounted in BT
cp -R -f bt5/* BT/
However this will give you error the reason is inode required is too high so we need to format the file in a different format
mke2fs -N 320000 bt.img
now copy command will work after mounting again.
2) After checking the whole tree structure i found 3 things which can save lots of space.
a) locale's were installed -> install localepurge. 44MB space is freed.
b) /tmp contained one folder msf3 and one tar.gz of framework.3 <- 400 MB saving.
now creating a new image file after this results in a compressed img file of <500 MB.
also i am working on some script set will upload that too....
I am using http://forum.xda-developers.com/show....php?t=1074169 as a development focus as i already have eary adopters in there so will be cross posting my latest finding's in this thread.