I want /var/lib/mysql/foo to NOT be linked to /KNOPPIX!!!!

[knopx4me]

Try to add the following to the /etc/skel/init.d/knoppix-autoconfig file of the remastered distro just before starting kdm:

cp -rp /KNOPPIX/var/lib/mysql /var/lib

I am not expert in mysql so I do not know what permissions you should also add to the above. Try it, it should work.