I’ve long used version 2, typically dropping a folder on it. The folder has usually been given the name I want for the DMG except for the extension. Also, I’m used to altering the name slightly for the volume name.
Now, the “Automatic” name mode is just that, so no chance to make changes, but if I use “Ask”, I always have to retype both the base and volume names because it truncates them.
e.g. I have a folder named “SomeApp_3.5.3” and when the save dialog comes up, it has both names listed as “SomeApp_3”.
I read the manual but I still don’t understand why DropDMG insists on truncating the filename as it mentions truncation only if the length is beyond the OS limits. It appears to me it chops every name with a ‘.’ in it, which certainly isn’t necessary.