knoppix-terminalserver doesn't work

["Werner P. Schulz" <fly@wp-schulz.de>]

With Knoppix V7.4.2 I cannot use knoppix-terminalserver. At the
TS client side it always stop with Kernel panic
/init: exec: line 1049: /etc/init: Permission denied

Is there a way to fix this problem?

Greetings Werner