3.7 had dma on by default. Try knoppix nodma at the prompt. Otherwise follow the documentation link near the top of this page and read the cheat codes section for other codes that you can try.
I just got the 3.7 cd and tried to live boot but only got about three lines in. the last two lines were knoppix finding my cdrom (samsung) and then it froze while working with /dev/sdc.
3.7 had dma on by default. Try knoppix nodma at the prompt. Otherwise follow the documentation link near the top of this page and read the cheat codes section for other codes that you can try.
---
Verifying of md5 checksum and burning a CD at slow speed are important.

Commodore 64 Vintage Home Computer Without Box/No turn ON/FOR PARTS
$99.99
Pi1541 Zero with Epyx Fastload Hat, Case & 16gb SD for Commodore 64 and 128
$84.99
Commodore OS USB | Bootable LIVE + Install | The Ultimate Gaming Linux OS | NEW
$11.99
Commodore C128 Comp w/ Original Box TESTED & WORKING + Original & PETG Key Plung
$260.98
Commodore 128 Personal Computer Powers On w/ Power Supply in Original Box
$145.00
Commodore 128 Case + Keyboard + LED, C128 Computer Parts
$42.50
Commodore 1541C Floppy Disk Drive Untested Powers On Original Box
$58.00
Commodore 64 Serial Cable 6PIN DIN 1541 1571 C64 128 C128 Disk Drive Printer USA
$10.49
Commodore 128 In Box Untested system guide and Power Cable
$195.49
Commodore 64 Dead Test & Diagnostic Cartridge & Test Harness Set - USA seller
$39.99