I have the same problem with my laptop. Try typing knoppix vga=normal at the boot prompt.

Not to sure with the ADSL.

But knoppix does have a file manager/webrowser. Konqueror. It should be in the little menu at the bottom.

As for OO you can save it in your home directory. If you want to save on a Hardrive you can. (If its not NTFS) Find the drive (If its the only one, it should be called hda1) right click and click mount. Then right click it again and go to actions then change read/write mode.
Yes all files can be seen by windows if you write to a windows drive.