Take a look at /etc/init.d/knoppix-autoconfig, because that's the master run script for knoppix. 'knoppix-autoconfig' is defined in /etc/inittab to be executed at boot.

Somewhere in knoppix-autoconfig, it will run /etc/rc.local, but it checks if it is executable, [ -x /etc/rc.local ], before it runs it.

So please check your /etc/rc.local has execution permission.

Actually for me, I wouldn't bother with /etc/rc.local. I put my own customization into /etc/init.d/knoppix-autoconfig directly. It's bad habit of mine, perhaps I am not a good example to follow.

Cheers.

p/s: your rc.local seems to be doing too many things. Some of which already done in /etc/init.d/knoppix-autoconfig.