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I am currently trying to create a directory within a mounted System Rescue .iso. The below list of commands is what I have done in an attempt to gain the ability to create a directory. The goal is to add the recovery files inside a file in the newly created directory so that I can boot and restore from the same disc.

[root@vm2 Utilities]# mount -o loop,rw /current/iso/macriumREG41.iso /mnt/temp/

[root@vm2 Utilities]# cd /mnt/temp/

[root@vm2 temp]# mkdir V4.1

mkdir: cannot create directory V4.1': Read-only file system

[root@vm2 temp]# mount -o remount,rw /mnt/temp/

[root@vm2 temp]# mkdir V4.1

mkdir: cannot create directory V4.1': Input/output error

[root@vm2 temp]# ls -l /current/iso/macriumREG41.iso

-rwxr--r--. 1 root nfsnobody 277413888 Dec  7 22:17   /current/iso/macriumREG41.iso

[root@vm2 temp]# chmod 777 !$

chmod 777 /current/iso/macriumREG41.iso

[root@vm2 temp]# mkdir V4.1

mkdir: cannot create directory `V4.1': Input/output error

Additional information:

[root@vm2 temp]# file /current/iso/macriumREG41.iso

/current/iso/macriumREG41.iso: ISO 9660 CD-ROM filesystem data 'RESCUE ' (bootable)

Any suggestions as to how I should proceed?

macriumREG41.iso contains ISO 9660 CD-ROM filesystem. This type of filesystem is created once and never modified. To modify it, you rather create it anew as a whole with a tool like genisoimage (mkisofs).

What you were trying to do was like creating a directory on a CD-ROM. In case of a physical CD-ROM this is physically impossible in the first place, but it's also impossible because of limitations of ISO 9660 filesystem. In case of a mounted image (your case) only the latter cause applies but it's still enough to make it impossible.

You need to create another .iso file based on the directories, files and boot data from the original image and your additional directories and files. Remember you want to keep it bootable. I have no experience with this, I cannot guide you in detail. Study man 1 genisoimage. I also found this old answer that recommends ISO Master; I think the software is available as isomaster package in Ubuntu, Debian etc.