It Looks like to me that an other solution to your problem could be to make/modify and use a GRUB boot floppy disk.
There are two options to make this grub floppy disk:
a) use your DOS 95 boot floppy and copy grub.exe on it and update your config.sys to remove all devices
(grub.exe do not work with emm386.exe loaded)
b) install grub in the floppy (boot sectors of the floppy), cf grub man pages
(or from xp use
http://s94002264.onlinehome.us/grub/grube.zip makeflo directory)
From there using the proper grub menu.lst config file, grub should be able to read
the linux kernel and boot ramdisk (linux & minirt_usb4.gz) from your disk drive
and from there boot knoppix from the cd drive or from the cd file image (iso file) stored on your hdd.
Link to grubh.zip (grub.exe and minirt_usb4.gz):
http://www.knoppix.net/forum/viewtop...?p=98940#98940
Hope this helps,
Gilles