I made a knoppix distro based off of slax linux-live scripts. I booted knoppix 5.0.1 and used mksquashfs from slax 6.0.0 pre3 to make a knoppix.lzm file. I took out /lib/modules in knoppix.lzm since you will have to use slax kernel anyway to get it to boot. This make the knoppix.lzm file 601MB in size. It saved 70mb with everything said and done (this includes the kernel and files on the cd needed to boot). This will make knoppix more module thin the current way. It also makes it more easier to add more programs and fix bugs with a slax layout.

Now the only problem will be the way debian updates the system. This file /var/lib/dpkg/status will have to be make with a script in order to make it as module as it can be.

ps there was a bug with kdelibs-3.5.2 caused uselivemod to crash the kernel. I update it to kdelibs-3.5.3 it works fine now. This is was only with knoppix 5.0.1. I will try to make a slax knoppix based on 5.1.1 this week sometime to test if it still there.