Greetings, Werner.

I can't answer your question directly; however FWIW:

I can report that Knoppix 7.4 will successfully record and use fat32 Knoppix cloops as did Knoppix 7.2.
I'm using a 64Mb KNOPPIX1 overlay made from an initial reiserfs persistence file, which has now
been re-formatted for subsequent changes.

I am using MakeOverlay in Knoppix 7.4 exactly as defined at
http://knoppix.net/forum/showthread....hlight=overlay

If Knoppix 7.4 isn't working as you say, then there must be some trivial miscoding somewhere,
because my experience says virtually all the necessary infrastructure works ok, and the amount of manual
manipulation that I employ is minimal.

HTH