It worked. I just tested it using kernel 2.4 .
Boot using kernel 2.4 and run the nvidia-live.sh.
Copy knoppix.sh and nvidia.tbz (from /home/knoppix/dist/nvidia) to any root partition of your harddisk.
Then start knoppix with cheatcode: knoppix myconfig=scan.

But I cannot run KDE, not enough memory. You need more than 500M to use this method if you intend to run KDE. You could try different desktop which use less memory such as xfce.
Ex: knoppix myconfig=scan desktop=xfce