Pardon me for being a newb, but I promise to learn as fast as any of you did. I want to make sure that I've got my steps in order before continuing. I've got 2 physical drives, each broken into partitions:
Dev0/par1: 10GB Win2k
/par2: 40GB FAT (for Linux/Win2k common files)
/par3: 60GB NTFS (additional Win2k storage)

Dev1/par1: 10GB (I WANT Debian/Knoppix HERE, new, unformatted now)
/par2: 500MB swap
/par3: 50GB games
/par4: 50GB media
/par5: 40GB Additional NTFS storage/software

I would like to leave my Win2k installation in tact, and if possible I would like to not lose any space by partitioning any more of it off.
From here, please check my steps to ensure accuracy:
1) dl Knoppix 3.6 for i386
2) Use Nero to make bootable CDs for Knoppix
3) boot from CD, run Knoppix installation

Questions:
Q1) I'm a bit confused on the instructions how to dual-boot, when do I run LILO/Grub, are those in the iso's/Knoppix installation I'm dl'ing? And do I have to re-partition part of my Win2k partition to allow LILO into the MBS?
Q2) I'm also a bit confused on how to properly install Knoppix on the hard drive (dev1/par1). I thought I read that my new Debian OS will continue to boot from CD after installing via Knoppix, but I don't see why anyone would want that, I want it all on the hdd.

If there's something missing or something I overlooked or misunderstood in my reading to date, please let me know.
Your assistance is greatly appreciated. If anyone needs Matlab help I'll bet I'd be happy to return the favor.