I feel more comfortable NOT modifying the HD on my laptop.
The underlying Win7 system works very well, and I don't feel confident enough to repair it if I break it.
What shall happen with NTFS from Windows7? Knoppix doesn't change or install anything; it creates a new directory "\knx" and writes some files and folders to it; that's all.
The 'lame duck' may have the potential of a self-contained
re-mastering capability.

It doesn't need external storage nor another OS to complete
the re-mastering. After the kn-recombine rsync phase,
dismount the 'duck and reboot IT with the option 'noimage'
and proceed with the kn-recombine write operation.
This doesn't work. On my page at position "Reassemble your flash disk" I wrote
The old files 'KNOPPIX' and 'knoppix-data.img' respectively 'knoppix-data.aes' (= persistent memory) will be removed.
You cannot exchange in a running Knoppix Live session the existing KNOPPIX with a new compressed filesystem Image (KNOPPIX).

Greetings Werner
http://www.wp-schulz.de/knoppix/recombine.html