Did Apple get hacked with this one?

Probably not. The icon shows up like a normal .dmg file for me. I think that's probably an icon for some other application that is hijacking your .dmg files into thinking they are a file from that application. You can easily change that by going to the info window and changing the application association of the file.
 
So you mean it shows up as a white file with a drive on your iDisk. Hmm I wonder what application would do that, because all my other DMGs display properly...
 
i had the exact same thing happen to me with a .dmg last night

its being associated with hexedit for some reason, no idea why though...
 
I checked the attributes on that .dmg yesterday night, and it confirmed what I suspected.

The iTunes .dmg has type/creator codes. Normal ones do not. This is why you can have these .dmg files be associated with another application while the iTunes .dmg is still associated with the weird program that is hijacking your files.

The solution is the same: select the iTunes .dmg, get info on it, select "Open with application" under the popup menu, and then in the big button in the middle, you can select Disk Copy again.
 
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