Well, I think I've tried all combinations of bootcodes but none helps. I am unable to install Knoppix to the HD on this laptop, so I need it to work when running from CD.

I says the videomemory is at only 1mb in the BIOS (And you cannot change this). Perhaps the XFree drivers are unable to allocate more memory for the graphics? The Windows drivers seems to be allocating memory automatically depending on how much you need, resolution you're running in etc.