Finally after a lot of playing about I was able to load Monoppix v1.1.8 from my NTFS partition.
You would need to have the following files to achieve this
miniroot_ntfs.gz,
vmlinuz
(google for the above files)
and the menu.lst file which needs to be modified. (My entire menu.lst below)
######################################################
# GvR Dec 16th 2004
color black/cyan yellow/cyan
timeout=5
default=0
title Default Boot on HD 0
rootnoverify (hd0,0)
chainloader +1
boot
# Knoppix Boot from a single NTFS partition hda1:
# All the files within the directory "Root_Of_NTFS" of the grubd.zip
# have to be copied into the root of the NTFS hda1 partition c:# but the boot.ini file (which is just here as an example,
# the line "c:\grldr="GRUB" has been added at the end of the boot.ini)
title Monoppix 1.1.8 kernel 2.4 from NTFS hda1 ISO scan ramdisk=32MB
kernel (hd0,0)/vmlinuz ramdisk_size=100000 init=/etc/init lang=us apm=power-off vga=normal nomce quiet fromhd=/dev/hda1/ config=scan home=scan ramdisk=32768 noprompt
initrd (hd0,0)/miniroot_ntfs.gz
boot
########################################################
All the above files need to be placed on the main partition (C:\ in my case)
You would need to extract the entire Monoppix folder (google for isobuster, this can extract files from iso) and place it on the main partition from where you will be booting (C:\ in my case). You would also need to modify your boot.ini file to allow for grub to be loaded which can then start up the linux kernel.This file is hidden so you would need to do an attrib *.* -h from the cmd window on the C:\ drive to make this visible.
Make a copy of your original boot.ini just in case and add the following line of code to the end of the boot.ini
c:\grldr="GRUB"
If you are using a SCSI or SATA hard drive, make sure you make the appropriate changes to the GRUB kernel append lines (ie, changing hda1 to sda1).
Reboot your machine and an option to load grub should come up along with windows, selecting this will give you the Monoppix option select this to start
loading Monoppix
This option works for Knoppix 3.4 or earlier distro's and Monoppix uses Knoppix 3.2