The easiest way to modify files on the Harddisk image is to use the DiskExplorer 1.69.

Additional you have to download the file called " "

Copy the files

in the root of the DiskExplorer folder.
Now you can load/read FMT HD images.

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If you have a already created .chd Harddisk image you have to first extract the Harddisk image.

Example: chdman -extract TownsOS_HDD260MB.chd TownsOS_HDD260MB.h0

otherwise it is not readable for the DiskExplorer.

To convert back into .chd format :

Example: chdman -createuncomphd TownsOS_HDD260MB.h0 TownsOS_HDD260MB.chd