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From: Gard Spreemann <gspr@gspr.dyndns.org>
To: sankarshana rao <san_wipro@yahoo.com>
Subject: Re: storing a Filesystem in a file
Date: Sat, 31 Jul 2004 03:49:16 +0200
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On Saturday 31 July 2004 03:46, you wrote:
> Hi,
> I have a requirement to create a file system in a file
> . Is this possible???
>
> thx in advance...

The subject and body seem to conflict a bit.
Answering the subject: Yes. Check out the dd command. Example: 
dd if=/dev/cdrom of=file.iso