(1) You can make an image by something that understands HPFS. One nice utility that can do it is PING, a Linux partition backup/restore. You can download PING here
http://freshmeat.net/projects/ping_partimage_is_not_ghost/the documentation to PING can be found here
http://ping.windowsdream.com/ping/howto-2.01.htmlPING is a bootable ISO that can backup/restore HPFS partitions. It is an "intelligent" backup that stores only used disc sectors and bzip's them. Therefore, the image is much smaller than the partition and much better manageable. PING is freeware.
(2) Restoring the partition elsewhere is possible but you will need DFSee:
http://www.dfsee.com/DFSee is a multi-platform HD editor, fdisk, etc.

which you will need for accomodationg the partition on another disc. You will need to update HD geometry and similar HW characteristics according to the new disc. You can do it after copying the ima.ge (but before trying to launch the image, of course). DFSee is a bootable ISO or an application. There exist a OS/2 version of DFSee, which you will use for it. DFSee is paid.