I'm in somewhat the same boat here, using knoppix 3.4 with kernel 2.4.26 and trying to install the nvidia drivers. I didn't try the NVIDIA shell script from nvidia.com first, am trying to go "the debian way" and more or less follow the README in /usr/share/doc/nvidia-kernel-source. Since (#1 method) I couldn't find a matching kernel-headers package for 2.4.26 (from uname -r) but only 2.4.26-1, I'm going with a full kernel rebuild and reinstall I guess.
I apt-get installed "nvidia-kernel-source knvidia-kernel-common kernel-source-2.4.26". I installed and applied the 'debian-kernel-patch-2.4.26' and 'kernel-patch-preempt-2.4' pkgs, copied over the .config from /boot/config-2.4.26 to /usr/src/linux/.config (/usr/src/linux sym links to new kernel source). I ran 'make menuconfig' and am doing 'make-kpkg kernel_image' now and waiting... I'll let you know how it turns out.
Isn't there a better way to do this? Anyone else have better luck or ever try 'knx-live-inst' to install nvidia before an hdinstall?

TP-Link TL-SG105, 5 Port Gigabit Unmanaged Ethernet Switch, Network Hub, Ethern
$15.25
NETGEAR GS308EP Essential Series 8-Port Gigabit PoE+ Unmanaged Switch
$44.99
Cisco WS-C3650-12X48UR-L 48-Port Stackable Layer 3 8x10G SFP+ Port Switch
$129.99
10-Port Gigabit PoE Network Switch with 8 PoE+ Ports with 2 Combo SFP Slots 125W
$39.99
TP-Link TL-SG105 5-Port Gigabit Ethernet Unmanaged Metal Desktop Network Switch
$19.99
5 Port Gigabit Unmanaged Ethernet Switch, Home Network Hub, Office Ethernet S...
$14.86
5Ports Gigabit Network Switch w/ 4 PoE+ Ports Total 52W each port 30W Plug&Play
$31.99
5 Port Gigabit Unmanaged Ethernet Switch, AUMOX PRO Home 5|5*1G Port, Black
$8.95
NETGEAR 5-Port Gigabit Ethernet Unmanaged Switch (Gs305) - Desktop Quiet Fanless
$25.99
Extreme Networks 10GE X440-G2-24P-10GE4 16533 24Plus-Ports POE+ Switch UP
$127.00