How to create an iso from current installation

I installed Ubuntu 14.04.1 on one of my laptops and now I want distribute that exact installation to a few of my friends. I tried making an iso with Gparted on a live session but it makes a 500 GB file (I've only used around 8 GB) .

Thanks in Advance !

I create my backups and live iso files with Systemback utility, you can install it from its PPA and it works the same as remastersys (no longer maintained), i think. In ubuntu 14.04 i needed an extra package called unionfs-fuse too. It can also create live usb images. You can add your user files in iso which can then be installed on other machines, but other machines may have different graphics etc so make sure you have not uninstalled preinstalled xorg video packages. So all you need is add ppa and install

sudo add-apt-repository ppa:nemh/systemback
sudo apt-get update && sudo apt-get install systemback unionfs-fuse

After creating iso file, creating live usb and booting from it on same machine or different machine, you will find systemback installed.

UPDATE November 2015

The new Remastersys is Pinguy Builder and there is also an app called Systemback which I prefer personally. Here is how you can install it:

sudo add-apt-repository ppa:nemh/systemback
sudo apt-get update
sudo apt-get install systemback

UPDATE 05.01.2015

The link I provide in this and other instructions in step 2 does not work anymore. However, I had downloaded the Remastersys files before the website shut down and they can be installed perfectly through Ubuntu Software Center. !! I am not sure if the files are available in Ubuntu Software Center, but if you have them on your computer, they can be installed through it.

To create iso from current installation you will need a program called "Remastersys".

This set of instructions helped me install and run successfully remastersys on Ubuntu 14.04.1 32bit

1. Press Ctrl+Alt+T and run

   sudo apt-get install plymouth-x11  
   

2. Go to this link and download remastersys version for 32bit or 64bit system

   http://www.remastersys.com/ubuntu/pool/main/r/remastersys-gui/

3. Open Programs and Updates (search in Dash or in the System's parameters)

4. In Programs and Updates, go to Other tab and press Add...

5. Copy/paste this:

   deb http://www.remastersys.com/ubuntu precise main
   

   and press OK

6. Now look for two lines with "www.remastersys.com/" in the list you can find on the Other tab and make sure you check both boxes. Enter a password if you are asked to.

7. Press Ctrl+Alt+T and run

   sudo -i 
   apt-get install remastersys-gui 
   

8. To open remastersys-gui, you always need root priveleges. So do it in the terminal (Ctrl+Alt+T)

   sudo -i 
   remastersys-gui
   

you can try pinguy builder version 3.xx series

first download the pinguy builder

second install gdebi in your Ubuntu system:

sudo apt-get install gdebi

third install pinguy builder

sudo gdebi pinguy

fourth go to start menu > system tools > pinguy builder enter your password

fifth in pinguy builder, you must select backup thats all

just tried it with lubuntu 14 last 10 october 2016 hope this could help