plazzmex,
In short, you cannot upgrade Knoppix as installed to the hard disk. Knoppix is NOT designed to be a hard disk installed Operating System. If you want to be able to do upgrades, I suggest you try Kanotix. It is very similar to Knoppix, but it is based solely on Debian Testing instead of a mix-n-match like Knoppix is, so full system upgrades will not crash your system.
http://kanotix.com