Actually I'm writing this from Knoppix as installed on my New Laptop. Works great.
I did attempt an apt-update followed by an individual package update. The result was that dselect was going to uninstall over 1/3rd of the installation including the entire KDE environment without replacing it with updated packages. The package didn't even have anything to do with KDE.
Is the "apt-get dist-upgrade" thing a safer/reliable way of doing things with Knoppix? I'm afraid of breaking to much of the "harmony" that Klaus Knopper has produced.