Thanks!
While waiting for this reply I downloaded a different flavor of Knoppix
(PC-Welt Knoppix professional 3.7). That comes with built in Prism
drivers. Using those I was able to get my USB Adapter to work.

>Specifics
>Knoppix 3.9 (from Live CD)
>MA111 USB adapter (led is on)
I was saying that in my situation I was running Knoppix 3.9 booting
from a live CD.
The USB adapter I am using is a Netgeare MA111 and its LED light is
on.

But to satisfy my curiosity I will reboot using the "old" version and
take a look at the log file.