You can actually run the Kanotix kernel on Knoppix and get the vanilla source from http://kanotix.com/files/kernel/
I didn't have to recompile a kernel to get the lm-sensors to work, and it seems you don't care for another compile
My kernel is an older one from Kanotix though I don't see why the recent 2.4.26 wouldn't work.
root@fujibox:~# uname -r
2.4.24-xfs-fe-dm1
Installing the Kanotix kernel is actually quicker (I think) than compiling on a sluggish computer like my Celeron 1000.
I tried to document some steps I took, and this is about it: (Could have forgotten something)

root@fujibox:~# tar -xvzf i2c-2.8.4.tar.gz
root@fujibox:~# tar -xvzf lm_sensors-2.8.6.tar.gz
root@fujibox:~# cd i2c-2.8.4
root@fujibox:~# make
root@fujibox:~# make install
root@fujibox:~# depmod -a
root@fujibox:~# cd ../lm_sensors-2.8.6
root@fujibox:~# make
root@fujibox:~# make install
root@fujibox:~# depmod -a
root@fujibox:~# cat /etc/ld.so.conf |grep /usr/local/lib (you should see "/usr/local/lib" as the output)
root@fujibox:~# ldconfig
root@fujibox:~# prog/mkdev/mkdev.sh
root@fujibox:~# prog/detect/sensors-detect

Substitute the rest with what you got from sensors-detect:

Add to: /etc/modules.conf:
# I2C module options
alias char-major-89 i2c-dev

Add to: /etc/init.d/bootmisc.sh
# I2C adapter drivers
modprobe i2c-i801
modprobe i2c-i810
# I2C chip drivers
# no driver for Asus AS2K129R Mozart-2 yet, ask us for one!
modprobe ddcmon
# sleep 2 # optional
/usr/local/bin/sensors -s

root@fujibox:~# update-modules
root@fujibox:~# shutdown -r now (and now is the time to cross fingers)

apt-get install whatever sensor software you want, ksensors, gkrellm?