Regarding "no PS2 Mouse on Knoppix 3.8.1". I'm having this problem with 3.9 also.
A quick look at the XF86Config-4 setup and it seems that the config was the problem.
The device /dev/input/mice should have the following protocol set...

Code:
Option "Protocol" "ExplorerPS/2"
An explanation: In kernel 2.6 ALL mice (including PS/2 mice) are exported by
the kernel as ExplorerPS/2 mice via the input subsystem /dev/input/mice .
And in fact, this should be the only mouse device in XF86Config-4 otherwise
you can get double events (eg. accidental double clicks).

How to fix it: Press ctrl-alt-F2 to get a terminal. Then type "vi /etc/X11/XF86Config-4"
(or maybe "pico /etc/X11/XF86Config-4" for those who don't know VI). Then
modify the "Protocol" line of the "/dev/input/mice" Device section. Save. Then press
ctrl-alt-F5 to get back to X or the GUI. Then press ctrl-alt-backspace to restart X.
Unfortunately this change isn't permanent on a live-CD. Duh...

Being relatively new to Knoppix, who do I contact to submit this as a bug fix?

Cheers,
Lyle.