Over the years I have seen many installations of Knob and Tube wiring. When it first starts out, it isn't a bad system - except for the occasional switched neutral and the lack of grounding. It's what happens to it later in its life that really bites (sometimes literally) - bad add-ons and circuit splits with equally bad splices, physical damage from being stepped on, wiring covered up with insulation, overheating from overfusing, etc.
When you really get down to it, a 1930's technology doesn't support a 2000's lifestyle very well.
Those guys that used to install that stuff were really good with the soldering irons, though...
[This message has been edited by mamills (edited 12-14-2005).]