Hello
I'm having the same problem, but for me the system "can't mount cd-rom filesystem" and got into mini-linux (only support for mount, cat, no ls, no /bin...).
Can be possible that my problem is related to be an SCSI disk? (the machine is a cluster server... can't be possible to use other disk :cry: )

my /boot/grub/grub.conf:

title Knoppix ISO from HD
kernel /cluster-images/linux init=/etc/init ro ramdisk_size=100000 initrd=/cluster-images/minirt.gz console=tty0 console=ttyS0,115200n8 bootfrom=/dev/sda2 2 lang=en apm=power-off nofirewire nousb nomce noeject home=/dev/sda2 myconf=/dev/sda2 vga=normal BOOT_IMAGE=knoppix

initrd /cluster-images/minirt.gz

Wich is the idea
To run image downloaded from net and update our system only reinstalling the iso :)
In my configuration, minirt (now in /boot/cluster-images/minirt.gz) is taken from knoppix CD - subdirectory ISOLINUX and bootfrom tried specifying full path or just using /KNOPPIX/KNOPPIX names for automatically selection, none of this possibilities worked.

Any Idea?

Thanks a lot.