1) Depends on the distro I guess, I'm not aware of a distro that does that just by holding a key, however...
2)
http://www.knoppix.net/wiki/Cheat_Codes
Quote:
Tips&Tricks
If you have an old (VGA) monitor and get only flickering with the defaults, try "knoppix-txt xvrefresh=60" or "fb800x600"
Most of the boot options are parsed in /etc/init.d/knoppix-autoconfig and the rest is found in /KNOPPIX/boot.img -> miniroot.gz -> linuxrc.
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Hope this helps.