I have a 13" Macbook Pro running OS X 10.8. During an update the hard drive got corrupted (horribly) somehow, to the point where it was unfixable using Disk Utility (wouldn't boot, could only get into recovery). I copied the entire disk to an external drive as a disk image. The disk image is functional, albeit with a "DamagedFiles" and a "lost+found" folder. Most everything seems intact- Applications, Library, System, and Users folders are all there and seem complete as far as I can tell.
I'm trying to figure out how to get my machine back the way it was. What I've tried:
Formatting HDD and copying disk image over to it (didn't work because it was copied as a .dmg image rather than copying the actual files, don't know how to resolve)
Doing a clean OS X install and using Migration Assistant to try to bring the files over (Migration Assistant doesn't see the mounted external drive as a source, don't know how to resolve)
Any ideas on how I could go about restoring my computer? I can manually drag and drop some stuff over, but I'd really like to have everything set the way it was, including system settings and my user account and the like. Cheers.