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FWIW, My experience with 7.4.1
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1. Downloaded 7.4.1 iso; did testdvd & passed.
2. Used inert 7.4.0 LiveUSB formated with reiserfs as target;
3. Used 7.4.1 LiveCD Install to Flash using first option: carry over some personal stuff.
4. Booted 7.4.1 LiveUSB; did testdvd & passed.
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Noted the following on 7.4.1 LiveUSB:
1. Reiserfs retained & working, but virtually empty at first.
2. Fat32 & Reiserfs parameters unchanged.
3. Mozilla bookmarks missing. These should be at ~/.mozilla.
4. Geany segfaulting; worked ok after re-install. Possibly mishandled ~/.config/geany.
5. Compiz has same problem as 7.4.0 not persisting changes.
6. Home-grown update*.tar.gz worked ok to re-constitute tweaks to files in:
/home/knoppix/, /etc/ and /mnt-system/.
7. Home-grown MakeOverlay worked ok to make read-only KNOPPIX1 overlay
from reiserfs /KNOPPIX-DATA.
8. Re-establishing syslog process used on 7.4.0 works ok with 7.4.1.
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My suspicion is that using 7.4.1's built-in option to carry over any personal stuff
may be both incomplete and flawed. I'll probably not use that option next time.
Compiz difficulty could be overcome with some reasonable ccsm documentation.
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I expected great things with a cheatcode labelled 'mkimage'.
I conclude it's only a miniscule change which might better be labelled 'enable persistence'.