Have you tried the 'nowheelmouse' cheat to see if that is the problem (or was it that you had to enable the wheelmouse in 3.3, mind is drawing a blank), and have you booted with the testcd option to verify that the disk is good. You may just want to go and DL the newest 3.4 that was released yesterday, then you could try to see if the problem was fixed with some driver upgrade.
I just booted off the CD, and as I searched through my hard drive partition, it locked up.

I just need to get some RW cds for Knoppix and figure this issue out. Thanks for all the help.