... the first entry within Google search
http://wiki.debian.org/SymLink
... the first entry within Google search
http://wiki.debian.org/SymLink
Updating post for progress for myself if need to remember and if anyone else has the same question. If you have a better approach, please post.
Never did figure out symlinks, but extracted firefox to a new directory that I created called apps and then a firefox directory was created, right clicked and copied the firefox application from the extract directory, then right click on desktop then create new / short-cut. Launches fine.
Haven't figured out how to use the FireFox icon, but launches fine.
In knoppix 7.2 the right click on the desktop icon, select the choice now called create link to application
To change the desktop icon, sudo gedit on file /home/knoppix/Desktop/Firefox (which is the name of the applicationlink)

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