I made some modifications to knoppix-autoconfig by adding following lines after last "fi":
# Setting right permissions and owners to /etc/qt3, /tmp/.ICE-unix and /tmp/.X11-unix
mkdir -p /tmp/.ICE-unix 2>/dev/null
chown -R root:root /tmp/.ICE-unix 2>/dev/null
chmod 1777 /tmp/.ICE-unix 2>/dev/null
mkdir -p /tmp/.X11-unix 2>/dev/null
chown -R root:root /tmp/.X11-unix 2>/dev/null
chmod 1777 /tmp/.X11-unix 2>/dev/null
chmod 777 /etc/qt3 2>/dev/null

# Copy everything from /etc/skel to /home/knoppix
mkdir -p /home/knoppix 2>/dev/null
cp -Rp /etc/skel/.??* /home/knoppix 2>/dev/null
cp -Rp /etc/skel/??* /home/knoppix 2>/dev/null
# mv /home/skel knoppix 2>/dev/null
chown -R knoppix:knoppix /home/knoppix 2>/dev/null
I think that home directory for user knoppix can be done in this early stage (before starting X) because in /etc/X11/Xsession.d/45xsession is always --ignore-existing before copying files.

These modificationg might be too complicated and I have forgotten what difficulties I had using 45xsession when copying files from /etc/skel to /home/knoppix. So this is only my temporary solution for KDE 3.4.1. Perhaps someone knows a better way to do these thing than I have done. I think that with KDE 3.4.0 was no problem in populating /home directory.

Hope there would be an updated 45xsession and knoppix-autoconfig file in next Knoppix release to solve these owner and permissions problems and /home/knoppix directory population problems.

-tapsa-