16 : Inconsistent filesystem structure
This error is returned by the filesystem code to denote an internal error caused by the sanity checks of the filesystem structure on disk not matching what it expects. This is usually caused by a corrupt filesystem or bugs in the code handling it in GRUB.
I wonder if it would be better to make and format your partitions with Gparted rather than the knoppix installer. Another suggestion would be to use a utility that wipes the drive with zeros first before partitioning and formatting, it is no secret that resident information written to a drive can and will affect a new format/installation. Formatting alone does not clean up the last operating system installation/virus files, only removes the ability to access them via format structure.
I have had many instances of leaching from one installation to the other with a simple format, always having an unstable system, till I started using bootitng
as my boot manager which has many nice features including wipe & secure wiping drives or partitions. The vendor also has a free utility called CopyWipe that can do this.
Older drives, possibly yours based on it's size, do not have the ability to re-map bad sectors. All drives have spare sectors, modern drives will re-map bad sectors transparently when the sector has to be re-read too many times, giving you the impression it is a good drive, but newer drives are more prone to producing bad sectors because of the higher ariel density and nano technology. Utilities that zero a drive/partition usually do a sanity check and re-map any bad sectors. A good utility for re-mapping without having to reinstall the OS is Spinrite, apparently in it's day (when drives did not do this automatically), it was a life saver for seemingly destined to fail drives.
I would think there are open source utilities (probably on the knoppix CD) that can do so also, I'm not aware of such because I have Spinrite and bootitng. Spinrite is only good for older drives and floppy disks. If you've ever had an OS tell you the floppy is no good even after a format and wants to format it again, normally you would chuck it, Spinrite will fix it for you, it may not have it's original full capacity, but will be usable as it will map out the bad sectors, and recover data from the bad ones.