I'm getting the same thing. I've tried both these files:
knoppix-std-0.1.iso
knoppix-std-0.1b.iso

which I had downloaded from the site (mirror site) and verified with md5sum.

I'm burning the CDs with Roxio Easy CD Creator 5.

I've tried both CDs on a Thinkpad T22 and a home-built Pentium4 box with the same init panic error.

All I can guess is perhaps its my CD Writing software??

Please let me know a resolution ASAP.. Thanks!