I am also having an issue using the flash-knoppix setup script... I am trying to put knoppix on a thumb drive... the only options that work are as follows:

r Allow installation only on removable devices.
sdb PNY USB 2.0 FD (62419.9MB)
p Installation on FAT32 with additional overlay partition.
Yes to format

this works fine, and I get a bootable thumb drive... but the whole point here is to make a "utility" drive so this doesn't really work as it creates a 4GB fat32 partition for Knoppix, and a ~55GB reiser partition... which is useless on anything NOT linux!

I guess I can delete the reiser partition and resize the fat32 partition, but then I loose the overlay option.

so what can I do to use the option of <4GB overlay file on the thumb drive using a ~64GB partition?