Restore system from DMG (original source disk bigger than destination) I'm running Lion and trying to restore a Snow Leopard system archived in a DMG file.

The restore destination is an external Firewire disk (160GB) and the original system was installed in a 250GB disk. The compressed DMG has 90GB, and uncompressed it takes 120GB.

Disk utility tells me that there's not enough space to restore. In the post Copying Time Machine backup, there are mentions to Carbon Copy Cloner and rsync command. Would any of these help me? Or is there some Disk Utility option I'm missing?
I managed to restore the system using Carbon Copy Cloner. 

It did as it should: The image fits in the destination disk? If yes, restore.