Well, I'm sorry if my apt-get upgrade advice screwed things up. A couple of comments:

1. You will still see apache, samba, and other things because the startup scripts are still there even though the application isn't. You can remove /etc/init.d/apache and /etc/init.d/samba and that should take care of it.

2. I don't ever recall seeing segmentation fault errors during boot up. I'm not sure what causes that.

3. The long time required to load KDE is probably due to X searching for font directories that aren't there. I had a similar problem and I think you can fix it by running the "fix-fonts" script here: http://kanotix.com/files/

4. Did you install "Debian-style" or "Knoppix-style"? I have always used the "Debian-style" and I don't see the green bar you describe in runlevel 1 (ctl+alt+F1). It is just text. I do see the green bar when running from the CD as this is shown when autoconfiguring hardware takes place. I'm not sure about "Knoppix-style" install because I haven't run it. My guess is that the upgrade changed something that is causing the hardware auotconfiguration problems.

I guess now is a good time to re-partition, sorry If you don't want to re-install, you could probably fix things, but I don't have experience with the "Knoppix-style" install (which I am assuming that you have).