1, Is there way to clone this hard drive ?
If you are cloning it to an identical hard drive, you can use dd, eg:
dd if=/dev/hda of=/dev/hdb
2, Is it possible to create bootable CD of the working system so that when I boot to new system from CD it will install exact the same with the working system I have now.
systemimager can do this. I haven't ever used it to make a CD, but I have used it to network boot installs.
You would need to install systemimager-server on another machine and systemimager-client on the one you are cloning.
Run 'prepareclient' on the client, then 'getimage' on the server. Then run 'updateclient' on the destination machine.
Cheers
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