I slightly modified linuxrc to enable the user to select where the big 700 M knoppix file stays at boot time .

for instance :
boot: knoppix lang=fr 2 knoppixdir=3 noapm ...


will make knoppix search the knoppix file in /dev/hd|sd|??/knoppix3/knoppix
in state of
/dev/hd|sd|??/knoppix/knoppix

Y'll have to put the big knoppix file in KNOPPIX/KNOPPIX and your morphix file in KNOPPIX1/KNOPPIX
(The name of the file has to be KNOPPIX wherever it stays)

Will that solve your problem ?
I can send you the linuxrc file if necessary ....