Klaus Knopper has released version 6.2 of his Debian-based live-CD Linux distro. Based on Debian 5.0 (“Lenny”), the new version uses the lightweight LXDE as the default desktop, and includes a new version of the ADRIANE talking menu system for vision-impaired users. More here
Today, Knoppix is commonly used by independent software vendors wishing to create demonstration versions of their wares. Knoppix is also fairly easy to install on CompactFlash, as described in this Knoppix-based solid-state CF music recorder project. Several Live CD distros are based on Knoppix, including Dreamlinux.