Ok nevermind my previous post. For some odd reason there was a blank space between # and the words right before and after but they were not showing. I only saw them when deleting the space, thinking I was deleting the # (then I had to delete twice to get to the #, thus I knew there was a hidden blank space)
Now it did create the .tgz file ...
EDIT: It worked but I am back to square zero.
The huge wasted space issue at the bottom to begin with is back in its full glory.
I'll try changing the 60 60 10 values to see if it fixes the problem...
But not tonight. I'm not feeling too well, I seriously need to lay down.