In my case, I used "tohd=/dev/sda2 mkimage" booting from my knoppix pendrive to copy knoppix to the internal hard drive (it only creates a normal folder named KNOPPIX). My data and changes are always encrypted with a password (AES256) and when I boot with the pendrive it searches for this folder automatically, I don't need to use the cheatcode "fromhd". When I type rhe password after knoopix asks me to use the encrypted data then I can continue without the pendrive. If I want to boot only from the pendrive (not from the folder of the hard drive) then I need to use "fromhd=/dev/sdb1" and so it avoids the harddrive. You don't need nothing more or format anything. It creates a folder inside your Windows o.s. and boots from there.