InstaDMG wrecked my server, real life horror story
I experienced the worst nightmare last weekend. I was doing an InstaDMG run of a Snow Leopard seed on one of my servers, and the result was it started to install stuff on /. Needless to say, InstaDMG quickly failed and I was left with a broken server. It's also one of the more critical servers we have, I was doing the building there because it has a large attached storage. I normally don't risk doing anything special on servers but figured InstaDMG is pretty safe. I was doing this from home as well, so had to go in on a weekend to try out my disaster recovery routines :-) Fortunately I have good backup routines and was able to restore the server completely from an image.
I'm not sure what went wrong, but I do recall there being some problems unmounting and ejecting disks on that specific server earlier, could have had something to do with it. I'm definately not saying this is a bug with InstaDMG, but rather a warning that servers are best left alone, strange things might happen :)