Very nice that you have got this working!
I have some comments, though:
1. Have you considered flash wear issues? While I think they could be controlled reasonably well in "pure" Linux, what about the virtual machine(s)?
2. Why did you use that particular partitioning/formatting scheme?
3. You may very soon run into problems with that small Knoppix partition (4GB).
4. Did you realize there is little sense in using two bootloaders and chaining when using grub4dos as the first?
5. Have you looked into Forester's remastering script?
http://www.knoppix.net/forum/threads...allation/page2
6. I don't see exactly where remastering comes in for you/other users in this scenario. I think the necessary programs mostly come with the DVD version, and the necessary modifications are easily accomodated on persistent store.
7. I think the running virtual Windows machines can not be redistributed in any case, unless Microsoft provides licenses.
My own approach:
First, I use a 2.5" 115GB SSD mounted in an external USB3 cabinet. Two partitions: ca 30 GB FAT32 for Knoppix and data exchange, and the rest for ext3 storage.
Booting: Preferably with grub, but anything that works goes.
Knoppix: Remastered image plus 4GB persistent store. I use Vmware Workstation for running virtual machines, which are stored in a directory at partition2, with backup tarballs of important versions (always possible to go back). After remastering, vmware is now in the compressed Knoppix image. I use a modification of Forester's script for remastering.
Currently, I have Win2000, WinXP and Win7 in virtual machines, all of them in use,
In contrast to USB flash sticks, SSD runs FAST, in particular with USB3-eqipped computers.