Thanks for the prompt help. I can now start the desktop after "KNOPPIX 2".

As for the cheat code, no it doesn't help at all. The problem lies in the "modeline" entries in the XF86Config-4 file. Obviously, the supplied skeleton one is not designed with LCD(at least not notebook LCD in mind). I can't even change it using the expert mode. I have to actually use "expert 2" in order to bring up the XF86Config then after getting the prompt, modified the generated /etc/X11/XF86Config-4 file and put in the correct MODELINE for the display.

Then "startx" and now I am typing happily using Mozilla.