Hi, I've encountered the same problem.

Using BitTorrent downloaded Knoppix 4.0.2 CD as an ISO in VMWare 4.0.5 (i.e. not burned) - forgive me if I have missed something that says I cant run it directly from the ISO. VMWare is running in WinXP SP2 / Athlon XP 2100 / 1Gb RAM...

On the welcome screen it does the ramdisk etc, then -

Code:
Done.
Starting init process.
/etc/init.d/rcS: line 43: 1183 Segmentation fault       $i start
INIT: Entering runlevel: 5
INIT: Id "1" respawning too fast: disabled for 5 minutes
INIT: Id "3" respawning too fast: disabled for 5 minutes
INIT: Id "2" respawning too fast: disabled for 5 minutes
INIT: Id "4" respawning too fast: disabled for 5 minutes
INIT: no more processes left in this runlevel
Then it seems to hang/wait (No CPU)

Any thoughts would be most appreciated

Cheers -Ben