well, u can use knx as a thin client, too:

start computer 2 (client) on runlevel 2 (at boot prompt type 'knoppix 2'),
then use the terminal server's xdm/kdm/gdm, as you prefer. This is done by:
X -query your_server (issued on computer 2)

Well, some further customization is needed on the knx server, as some configs are symlinked read-only from the cd. U can delete and copy them instead, and while /etc is on the ramdisk, u can access it read-write.
I have done a 5-minute-work to start xdm the normal way, this is very much the same as it is written in LTSP's docs (see www.ltsp.org)
The most efficient way is to have knx installed onto HD, in that case you do not need to bother with access rights Any Q's are welcome, but i am short in time, so suspicious delays may occur in answers ))

linuxfan