I have the same problem as well (using Logitec usb mouse and keyboard). I read somewhere on a Mandrake forum (when I tried that distro) and there was something about "noapic"

When you are at the boot screen, type "knoppix noapic" (without the quotes).........this has worked for me......my only problem is that I don't remember what file to change, to add this to, so it is automatic.

Also, I can't get my printer (HP officejet V40) to work. It is a USB on a usb hub and when I install it under CUPS I get that the test print was sent to the printer, but nothing happens. NOW, I thought that I read somewhere as well, that the "noapic" command does something about the USB hardware detection, and this could be my printer problem.

I hope the above info will help any of you who have the mouse and keyboard problem. Please, if anyone knows of the problem that I'm having with the printer or knows how to get around the "knoppix noapic" command at boot, please let me know. Distro works, but would like it to automatic at startup.

Thanks