"And what is it: when I execute knoppix-installer from a text terminal it runs like text-mode windows installer, and when I run knoppix installer from KDE It run's in graphical mode?"

It DOES? That's either new or old. The old installer (script called knx-hdinstall) would do graphical if run in KDE, but text/curses if Knoppix was run w/o the GUI. When it changed to knoppix-installer, I remember it refusing to run if KDE wasn't running. If it works completely CLI, that means I could remove KDE and X Windows and use it as the basis for a server install. Cool.

But my understanding of the installer script is that it is simply a copying operation, not installing packages like a traditional installer. It's limited to the packages installed in the live CD--no more, no less. The only reason it's complicated is the need for special handling of some directories (/proc, for instance), and the fact it needs to produce different versions of configuration files, and set varying permissions--especially in order to allow the three different styles of install.