3.8 persistent home directory

I put a cd image and created a persistent home on /dev/hda1

The boot line I use is:

boot: knoppix lang=us keyboard=us bootfrom=/dev/hda1/knx38.iso home=/dev/hda1

It boots fine but home is still in ramdisk. Mount tells me:

/dev/root on / type ext2 (rw)
/dev/hda1 on /cdrom2.loop type ext2 (ro)
/cdrom2.loop/knx38.iso on /cdrom/ type iso9660 (ro,loop=/dev/loop0)
/dev/cloop on /KNOPPIX type iso9660 (ro)
/ramdisk on /ramdisk type tmpfs (rw,size=400376k)
/UNIONFS on /UNIONFS type unionfs (rw,dirs=/ramdisk=rw:/KNOPPIX=ro)
/proc/bus/usb on /proc/bus/usb type usbfs (rw,devmode=0666)
automount(pid2508) on /mnt/auto type autofs (rw,fd=4,pgrp=2508,minproto=2,maxproto=4)

Since /dev/hda1 is mounted read-only I don't see how it could put home on the same partition. I would like to the use that 28G partition for other things as well. Is there a way to make this work without either using two partitions or doing a disk install?

If this is a simple RTFM question please kindly point me to the appropriate documentation, and thanks.