SOLVED!!!
1) Using the fresh install of Knoppix 5.01,
2) edit /etc/X11/xorg.conf to use i810 driver
3)install the following enabled Direct Rendering. (glxinfo | grep render)
mesa-common-dev (= 6.5.0.cvs.20060524-1)
libgl1-mesa-glx (= 6.5.0.cvs.20060524-1)
libgl1-mesa-dri (= 6.5.0.cvs.20060524-1)
libgl1-mesa-dev (6.5.0.cvs.20060524-1)
EDIT#1: Turns out this brakes XMMS with BadMatch Invalid Parameter.... but whatever, there are other Media players for linux that work fine.
EDIT#2 In terminal type "export XLIB_SKIP_ARGB_VISUALS=1" then type "xmms" and it'll start up. Same thing for Audacity.
EDIT#3 add this to the bottom of /etc/profile and you won't have to type it everytime you need it.