I haven't downloaded the latest KNOPPIX so I don't know. I use a previous version of KNOPPIX but compiled my own kernel which I incorporate a new NTFS driver which I have no problem putting the big clooped KNOPPIX file on an NTFS partition(this cannot be done with the KNOPPIX kernel on the CD).

As for writing to NTFS partition, the new driver is quite stable in 'overwritten' but not freely write to NTFS partition. What it means is that I can say create a large file in window and then create a file system using the loopback driver on it, this is how KNOPPIX handle persistent home.

As for the MBR, I have it solved too(so long we are talking about NT/W2K/XP). I have patched an utility for GRUB which can be run under WIN32. What it means is that I don't have to touch any of the partition/MBR but can still install a copy of GRUB on a NTFS or FAT partition under Window and chain boot into it using the NT boot loader.

In this way, I can dual boot happily between various flavour of linux(all from GRUB) or XP without repartition my HD in anyway. I hate repartitioning which is why I went to such length to make sure KNOPPIX run happily on a M$ poisoned system(like the whole HD is formatted for NTFS).