dont make it complicated.
its very simple.
vi /etc/X11/Xsession.d/45xsession
comment out lines 125 - 154
and save the file.
(comment out is putting # at the start of each line).
stage 2:
vi /etc/init.d/knoppix-autoconfig
at line 1181 after the fi in new line i add:
mkdir /home/knoppix
cp -R /etc/skel/.??* /home/knoppix
cp -R /etc/skel/* /home/knoppix
chown -R knoppix:knoppix /home/knoppix
make steps 2 & 3 and burn the iso.
this will solve all your problems.
Used this solution and worked fine, the only question I have after the remastering system was in german language How can i change it? And Earlier before there was some errors mentioned about this way? what kind of errors?

Thanks

Nikolay