Installing Knoppix to an ext. usb hard drive, GRUB problem

I have just installed Knoppix 4.0.2 to an external USB hard drive connected to my laptop. The install went smoothly, but when I boot from it I cant get past the grub editor. Here is what it outputs,

root (hd1,0)
kernel /boot/vmlinuz root=/dev/sda1 ro ramdisk_size=100000 init=/etc/init lang=us apm=power-off nomce quiet noscsi vga=791
initrd /boot/initrd.img
savedefault
boot

Im not sure how to make this work, I have searched the web for solutions, but so far nothing has worked.

My external drive is parted up like this, (from qparted)

/dev/sda
01 /dev/sda1 ext3 9.31GB
02 /dev/sda2 linux swap 953.67MB
03 /dev/sda3 ext3 60.83GB
04 /dev/sda-1 free 3.45GB

I want to run knoppix on the external drive and not partition my internal laptop drive (only 40 gigs)

Can someone point me in the right direction?

Thanks!