For several years I have run both the Knoppix ISO-image and disk-based versions under kvm for installs, maintenance etc. The basic method works for 8.3 too, but only as far as the first flash install.
Klaus K has made Knoppix more "fool-proof" to run under kvm by restricting it to read-only mode. For many users, that is clearly a feature: You may run your ordinary Knoppix install under kvm so it functions as both host and guest at once, but if persistent store is involved, and the host and the guest instances perform different updates to that, then what?
It is only a question of time until the file system is corrupted - it is easy to imagine that prof. Knopper has introduced this restriction from experiences with broken systems.
The bug is that it doesn't stop there. If you run different copies of Knoppix on different partitions, or run Knoppix under another OS variety, even another version of Knoppix, the only thing to be careful about is that the partition where the persistent store of the VM resides is not writable by other OS'es. But don't try to explain that to Knoppix 8.3. It only checks whether it is run under kvm, and in that case, the system is mounted read-only. Which kind of blocks many important uses of Knoppix images.
While the default behaviour is "correct", there must be a cheatcode for disabling it, e.g. VIRTWRITE. I guess specialists on minirt.gz should not have too much problems rolling their own, but this is a general issue, so for me it belongs in Knopper-land proper.
VINTAGE DEC DIGITAL ELECTRONICS M3102 5014992D1-P1 DUAL RS-232 LINE MODULE BOARD
$19.00
VINTAGE DEC DIGITAL H315B MODEM TEST CONNECTOR MODULE
$11.00
VINTAGE DEC DIGITAL EQUIPMENT 5011698 C H325 TEST CONNECTOR MODULE
$11.00
VINTAGE DEC DIGITAL 5418034 5018033-01 DECSREVER MAIN BOARD 54-18034
$75.00
Vintage DEC Digital VT100 Terminal and Keyboard
$1105.00
Digital Equipment Corp VAX 6000-410 DEC Calypso Mid-Range 1989 Vintage Server
$7500.00
New Vintage DEC Digital PS2 Mouse PC7XS-AA
$35.00
Vintage DEC 14" hard disk platter - Steampunk Industrial Art / Collectible
$37.50
VINTAGE DEC DIGITAL M627 INPUT NAND GATES BOARD MODULE
$14.00
VINTAGE RARE WEBSTER WQDZ/06 WQDZVRA2 BOARD FOR DEC DIGITAL VAX
$37.00