For Knoppix 6 the fix is easy:
edit the boot/isolinux/isolinux.cfg file: (see remaster faq?)
to each line with APPEND ramdisk_size=...
add at the end
max_loop=64
after booting you have to
sudo su
cd /dev
for (( i=8; i<64; i++))
do
mknod loop$i b 7 $i
done