I followed steps listed here http://www.knoppix.net/forum/viewtopic.php?t=4174, and everything went smooth, until....
c:
cd \
attrib -h -r -s boot.ini
copy boot.ini boot.old
notepad boot.ini

(20) Notepad will start, with Boot.ini loaded. Edit the first line, 'Timeout=30'. Change it to 'Timeout=5'. This changes your boot selection timeout to 5 seconds, instead of 30.

(21) At the very end of the file, add C:\bootsect.knx = "Knoppix"

(22) Save the file. Get back to that command prompt. Issue attrib +h +r +s boot.ini.

(23) Reboot. Now, you should have two options: your previous Windows OS and Knoppix. Done!
I rebooted, and get a menu that asks me to select Windows XP Pro or Knoppix. Great, but,

When i choose Knoppix - i get an error stating that the disk cannot be read and the os cannot be started...blah blah blah. Where did i go wrong.

Xp still boots fine and Knoppix will boot also, but only from the floppy created during the install.

Any help appreciated. Thanks.