I'm not sure what that error is?? Sorry I was so vague in my earlier post, I didn't have much time. Here is what I did which works great for me, see this link: http://www.knoppix.net/forum/viewtopic.php?t=13177
You have nothing to lose by doing an hd install because you don't already have a fat32 partition. If you can't get QTParted to work you could always try a windows program, there are a bunch here: http://www.knoppix.net/docs/index.php/PartitionManagers
I will help in anyway that I can, I'm still a newbie too, I only got knoppix a week ago, but I did some work with pear pc and emulating OS X so this isn't as big of a change for me. Hope you get it to work!!