Hi,
I read from the screenshot that the access to the pci-ide controller ist the problem. "DriveReady SeekComplete Error".
I would try to install knoppix onto a partition laying on another disk.

Sorry, but I donīt have really good solution!
Jones

PS:
To avoid the error "RAMDISK: incomplete write ...):
You must set the ramdisk_size > 20000: (knoppix_installer sets it to 100000)
Append ramdisk_size=100000 to your /etc/lilo.conf or /boot/grub/menu.lst.