You are right - you have to modify the KPH knoppix.sh a bit. Sorry for that; the update is on the way. Till then you can fix it yourself for the 0.4 version:

Open the knoppix.sh file from KHP and change line #112
from: "mount $p $d 2>&1 > /dev/null"
to: "mount $d 2>&1 > /dev/null"
That's it! Thank you, Matthias! HD access works fine now.

I'm looking forward to the next update, of course!

I'm thinking of copying the Knoppix directory to the HD, in order to run from the HD without a full installation. Do you know if Persistent Home will work if Knoppix is located on the HD?

Thanks again!