OK,
So I got KNOPPIX 3.7 to boot off my 1GB usb pendrive, In order to get it to work I had to copy all of the files in the BOOT DIR to the root of the drive.
I can run KNOPPIX with the 2.4 kernel but not the 2.6, it will tell me that it cannot find it.
I'm a Linux NOOB, and have just started messing with it.
I have gotten the distro down to about 400mb, I had to shave off Openoffice and KDE.

Anyone tried this or know how to fix it ?