If you want to use knoppix as a wireless bridge between a wireless interface (ath0/wifi0/rausb0) and a hardware interface (eth0), you can do the following but the catch is that the hardware port eth0 will be NAD'd (behind a firewall):
echo 1 > /proc/sys/net/ipv4/ip_forward
iptables -t nat -A POSTROUTING -o eth0 -j MASQUERADE
set eth0 to a new subnet.
set your win7 client (connected to LAN interface)
static IP on that subnet
gateway to the IP of LAN interface
DNS to IP of gateway of WAN interface
I do this and it works great.
More details at http://lindesk.com/2007/04/internet-...sing-iptables/