Having had to type these steps out one time too many, here is a guide to manually patching KnightOnline complete with pictures.
This guide is written for Windows XP and Internet Explorer 6, but should also apply to IE7, Vista or 2000 with only minor adjustments, which I shall leave for the user to worry about. I also assume you use WinZip, if you use a different Archiver, then you will need to adjust the WinZip steps accordingly.
1: Check Current KO Version
Open up My Computer
Open Local Disk (C
Open Program Files
Open Knight Online (might appear as KnightOnline without the space depending on when you first installed)
Open server.ini (might appear just as "server" if you have file extensions hidden)
Look for the line which starts "Files=", the number after this is your current version of KnightOnline
Leave this folder open, you will need it again later.
2: Enabling Passive FTP
Open Internet Explorer
Click Internet Options
Click on the Advanced tab
Scroll down to find the entry for Passive FTP
Enable Passive FTP (near the bottom of this screenshot)
3: Downloading the patches
Click on Start
Click on Run...
Enter ftp://download.knightonlineworld.com/knight/upgrade or click this link
You should see the list of patches available as below
Select all the patches numbered HIGHER than your current version.
Click on Edit
Bring up the Knight Online folder you found in step 1
Click on Edit
You should see the files copy to your Knight Online folder. Wait until this completes.
4: Installing the patches
Select the LOWEST numbered patch you just downloaded.
Right Click the patch
Select WinZip -> Extract to here (as shown below)
If prompted to overwrite files, say Yes.
Once the extract has completed, select the remaining patches in number order and extract them one at a time, in the same way.
5: Updating KnightOnline
Now all the patches are in place, we need to tell the launcher that you have installed them.
Double click on Server.ini
Locate the line starting "Files="
Update the number to equal the highest number patch you just installed.
Save the file
You should now be able to launch Knight Online and enter the game normally.