I have been able to boot knoppix 3.4 from the loop back file system image
file being on a logical fat32 partition using Grub 0.95 + the grub4dos patch. Grub was loaded from the boot.ini of the XP boot loader being on the primary and active NTFS partition. Yes grub can now be loaded from a NTFS partition and do not need to have it's stage1 in the master boot record of the disk !
I am trying now to boot knoppix entirely out of a single NTFS partition without CD, floppy nor any change in the disk mbr... I am looking for the minimum amount of changes to get a very easy and safe knoppix boot. Grub does a great job so far to load the kernel and the ramdisk from the NTFS partition but knoppix hangs when the linuxrc is looking for the loopback file system what ever it is included within the iso file or not. I have added the ntfs.o within the miniroot.gz and modified the linuxrc to have a chance to mount the ntfs. This is where I am right now and don't know how to move forward. Please advise. Thanks, Gilles