I used DiagTransfer once, and it seemed to work OK, except I think it might have a bug in its FEN string generation (I think it miscounts the move numbers by either a half move or a full move).
There's another program you might want to try, although I haven't used it yet. It's called Chessboard Capture Program:
https://sites.google.com/site/fredm/
I often want to enter chesspositions from the webb to my chessdatabase. But it's troublesome and it's easy to make mistakes.
A usefull tool is DiagTransfer (http://alain.blaisot.free.fr/DiagTransfer/English/home.htm), wich makes this task much easier.
The tool has a transparent board mode wich you lay over the image, and then enter the pieces. When you are ready, you create a copy to the clipboard (in FEN format) which can be pasted to database chessboard.