Please see the knoppix documentation (link at top of this page) regarding wholesale upgrading of a knoppix system.
The short answer: Don't do it.
Have installed Knoppix 5.0 from DVD. All works well except
1. That my network configuration does not load, it loads when running from the DVD disk. Using Knoppix Network/Internet, Network Card configuration it finds the network card and configures DCHP. Why does it loose this configuration upon reboot?
2. After using Kpackage (Package Manager) then doing Special, APTebian, Update and then Upgrade. On upgrade I choose to install the new version of packages when asked to install new or keep current version of packages. I did not log the pacakages that ask me that.
Now after those updates I reboot, this is what I get and unable to boot into Knoppix:
Booting 'Debian GNU/Linux, kernel 2.6.15 Default
root (hd1,2)
Filesystem type is reiserfs, partition type 0x83
kernel /boot/vmlinuz root=/dev/hdb3 ro ramdisk_size=10000 lang=us apm=power-O
ff nomce vga=791
[Linux-bzImage, setup=0x1c00, size=0x186861]
initrd /boot/intrd.img
[Linux-initrd @ 0x1fb90000, 0x44ffd4 bytes]
savedefault
Error 16: Iconsistent filesystem structure
Press any key to continue...
Please see the knoppix documentation (link at top of this page) regarding wholesale upgrading of a knoppix system.
The short answer: Don't do it.

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