OK-I'm gonna show you how I do it....
Original syslinux.cfg from DSL-embedded-
APPEND ramdisk_size=100000 init=/etc/init lang=us apm=power-off vga=791 initrd=minirt24.gz nomce noapic qemu quiet BOOT_IMAGE=knoppix frugal
and my syslinux.cfg as above-
APPEND ramdisk_size=100000 init=/etc/init lang=us apm=power-off vga=791 initrd=/minirt24.gz nomce noapic quiet knoppix_dir=DSL KNOPPIX_DIR=DSL BOOT_IMAGE=knoppix
OK-rename the KNOPPIX folder to DSL, and add the append above "knoppix_dir=DSL KNOPPIX_DIR=DSL"
Now-to utilize the mydsl extensions and backup.tar.gz you should make 2 partitions on the usb.
DSL recognizes USB's as sda1/sda2, etc.
Make the first partition 55MB, and the second whatever you want...
Put the DSL-embedded on sda1, leaving sda2 empty...
Also-I use FAT32 exclusively as I have had problems with FAT16...
Also-to install syslinux you need to know the device name-yours is sdc1??
If so try "sudo syslinux -s -f /dev/sdc1"
To find out if syslinux was installed to usb-
open the usb and a file named "ldlinux.sys" should be there-that's syslinux.
OK-if all is well, try to reboot into dsl via usb
NOTE-at the boot line enter "dsl mydsl=sda2"
It will designate that and create a folder there named mydsl.
DO NOT ADD ANY APPS YET!
Now, update the mydsl database, then make sure the backup box is checked at the shutdown menu-and reboot.
At boot time enter "dsl mydsl=sda2 restore=sda2"
though nothing to restore it will know where to go.
Now-at the desktop-open a root shell and type
sda2 should be mounted
type "mkdir /mnt/sda2/mydsl/modules"
and "mkdir /mnt/sda2/mydsl/optional"
and then "cp /KNOPPIX/lib/modules/2.4.31/kernel/drivers/block/cloop.o mnt/sda2/mydsl/modules"
Now backup and reboot...
run it again-it should now restore everything, At desktop-start installing themes/apps, etc
do a backup and reboot, making sure it all works...
Hope that helps a little-please post again if any issues....