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2) If the disk contains a NTFS partition taking all of the available space (likely for a Windows user, even if the partition is nearly empty ) then writing to it at all with Knoppix is considered dangerous and may corrupt all of your data.
I won't recommend this but I am using this myself. I discovered that Knoppix 6.2 will not umount cleanly but ever since I fixed that, and plus I am using a newer ntfs-3g driver, I am pretty comfortable with this. Knoppix appears only as a few files to the host file system, most of them readonly, the only writable one is knoppix-data.img. My Usb is just too slow.
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3) Knoppix is a live CD or DVD, and isn't really intended to be installed to hard disk or suitable for it. There are a few hacks for doing this, but they are for special cases such as class room use. If you want a knoppix like Linux installed to a hard disk, you are much better off installing Debian rather than Knoppix, this is what Debian is intended for. (Same space issues still apply).
I prefer ubuntu as Desktop because they always put out new things on it.