I have success!!

To be honest, I'm not 100% certain what exactly I did, but I'll try to summarize.

1) I used WinRAR to "extract" the files from the Knoppixs ISO and put these in a folder labeled "knoppix-exp"(exp for expanded).

2)I ran mkfloppy.bat from "c:\knoppix-exp\knoppix"(or the knoppix sub-folder on the CD)

3)I opened Nero and chose to make a new CD. I ignored the wizard, and chose to make a bootable CD-ROM and it asked for an example(well, I don't remember exactly what it asked for, will have to edit this later if anyone is really interested) and used the floppy for the example.

I have an "improper" CD made proper.

L J