I wanted to encrypt but that screen flashed by so fast I missed it.
... at this point to create persistent memory, Knoppix doesn't wait very long. Reboot and try once more.

If you already have a persistent memory but not encrypted, follow the suggestion to delete '/KNOPPIX/knoppix-data.img'

Greetings Werner * http://www.wp-schulz.de/knoppix/summary.html
"Build personal Recovery-CD with Knoppix (Knoppix remaster)"