I've got v3.2-2003-07-26.EN running on a 760EL. Nothing special to make it boot other than use a boot floppy. Perhaps your floppy boot was corrupt.

To make X run, It took a while to discover on the slow booting machine that you should use the following cheat codes.:

knoppix screen=800x600 fb800x600

Seems a bit redundant, but it boots into X in a little while. Haven't got the sound configured yet, but it is still usable. A linksys "wired" networking card works fine with no additional configuration.

Hope that helps