Transmac doesn't convert dmgs to isos, but you can use it to put the installation media on usb.

Also, we don't support piracy here

But as a tip I say, it doesn't matter, and you can go to 10.6.8 easily.

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My Hardware
CPU: Intel Celeron G530
Memory: 4.00 GB DDR3 1333Mhz
Graphics: NVIDIA GeForce GTX 550 Ti
OS: Mac OS X Lion 10.7.4 - Vanilla kernel
Motherboard: Gigabyte GA-H61M-D2-B3