Hello again, howie.

The reisers approach is the new 'experimental' approach.
I didn't have any problem with it, myself.
I started with an 8 Gb SanDisk cruzer and/or a 16 Gb SanDisk
'camera card'. Both were formatted Fat32, single partition
at the factory.

Some users report usbs pre-formatted with several small partitions.
That may be a problem. By the way, don't provide the reiserf partition yourself,
let Knoppix do it.

I suggest you see what your usb looks like with gparted, and if
it is not single partition Fat32, then make it so and try again
with the 'experimental' option.

If that doesn't do it, then give our experts here more details
and they'll get to the bottom of it.