I just went through this myself and I think I found an easier way..I went to the KNOPPIX menu, picked Configure, and chose the option to create a persistent home directory. It prompted me about whether I wanted to use the entire partition I directed it to (to which I said yes - that's what I created it for), it formatted the partition, then it told me it transferred my home directory to that partition. Done.

Is it really that easy? Or am I missing something?