To Edwin:
OK, I figured-out when cupsd returns that "98" error. Right after I boot-up the KNOPPIX CD, sudo cupsd (in shell) returns nothing, but starts the cups daemon as http://localhost:631 (in konqueror) works only after that.

Now, whether I configure the printer with

<K><KNOPPIX><Configure><Configure printer(s)>
(the KNOPPIX Printer Configuration Tool)

or with

http://localhost:631
(the cups admin webpage)

I then get the error right away. This happens in shell with sudo cupsd even before printing from the app of my choice. So its not KATE. Also, its not the KNOPPIX Printer Configuration Tool. It must be a problem with CUPS itself.

To Paradox:
Thanx for your input, I now have the same results you have in the control center. However, printing as you suggest (with *.ps) is a bit too cumbersome for use on a daily basis with students....

To All:
There's another twist. I can't print from any app, but the CUPS admin webpage can send a test print job to my printer and it comes out just fine. What's up with that???

TIA,