Will KNOPPIX Cause hardware (motherboard or RAM) problems?

[SiKing]

I want to know whether Knoppix can cause problems like this? Can it damage hardware (motherboard or RAM)? Can it conflict with windows XP?

Anything is possible, however what you describe is very unlikely.

I also want to know where my files are stored if i am not explicitly specifying? Because the entire OS is in the CD. If i am writing or downloading something it should be stored somewhere? I have downloaded abt 100MB size file in knoppix using net. The file stored in default donload location of knoppix. When i removed my cd and searched in Windows for the downloaded file i cannot find it. So plz tell where the files are stored? Does knoppix uses harddrive to store files? If yes where?

KNOPPIX by default will start up your system such that everything (it finds) is read only. By default, KNOPPIX works completely from a RAM disk - from memory. That means when you reboot the system, everything dissapears - which you noticed when tried to search for downloaded files on your Windows system.
Having said that, all the defaults can be changed. But KNOPPIX is intelligent enough to first warn you if you ask it to cause irreversible changes to your system.
HTH, SiKing