Depends on the knife size. 20X20X20 would work fine for simple photos of most general knives (catalog photos).If you think you will be doing big bowies,or want lots of background items,then the larger unit would be best (Knife book photos).
A 2X4 foot sheet of cracked ice fluorescent light cover makes a great diffuser.I'll give a super short build-it guide.
Take a 30X30" piece of plywood and mount two 24" pieces of 2X2" on it,24" apart.Bow the piece of 2X4' plastic diffuser and stick the ends inside these cleats.It makes a big arch.Take two 24X24" pieces of the same diffuser material and set them against the ends.Use some tape to hold them in place if needed (they stay just fine usually).Mount four gooseneck lamps on the corners,and put photo type bulbs in them.Take one of the 24X24" panels and make a 3" hole in it with a door hole saw.Make the hole about 8" up from the side,centered.That way you can take the photo through the hole at a low angle or flip the panel for a high angle shot or side angles.Move the lamps up and down to create the lighting you desire.The whole thing can be stored as is or the dome can be popped out to store flat.Costs less than $70,mostly for the lighting.