From my HOWTO http://www.knoppix.net/forum/viewtopic.php?t=13867
I must now mention the file /etc/X11/Xsession.d/45xsession. This script controls how knoppix behaves & how knoppix creates the knoppix user's home directory. I am looking for the ninth occurence of rsync in the script and it is found at the line 128:
126: if [ -z "$DONTCHANGE" ]; then
127: # No persistent homedir, copy everything
128: rsync -Ha --ignore-existing /etc/skel/{.kde*,Desktop} $HOME/ 2>/dev/null
129: [ "$USER" = "knoppix" ] && rsync -Ha --ignore-existing /usr/share/knoppix/profile/{.kde*,Desktop} $HOME/ 2>/dev/null
It is line 128 which populates the /home/knoppix folder. So In line 128, I delete from & including the { to the }. It is changed as follows.
126: if [ -z "$DONTCHANGE" ]; then
127: # No persistent homedir, copy everything
128: rsync -Ha --ignore-existing /etc/skel/ $HOME/ 2>/dev/null
129: [ "$USER" = "knoppix" ] && rsync -Ha --ignore-existing /usr/share/knoppix/profile/{.kde*,Desktop} $HOME/ 2>/dev/null
Make the change and save the 45xsession file.

I hope this helps.
James