Ian Butler wrote:
In 38 Basic Joseki it says there is no way for white (invader) to live with the 3-3 invasion when black has the 4-4 and a small knight's extension, except fighting a ko.
I was confused by the same thing at your level. I won't claim to fully understand it now, but I am much less confused

(So, hopefully, someone else will correct me if I'm wrong, and we can both learn from this!)
Usually, what is said in this situation is that with the 3-3 invasion, "The
best white can do is ko". I think beginners often interpret this as "it's impossible to live in there unconditionally." The logic being that if you can live in there, then living unconditionally would be better than having to fight a ko to live? What they actually mean is that, while white can live, living unconditionally is actually worse than the ko. As Bill shows above, when white chooses the option that leads to unconditional life, white gets very few points in the corner, black builds up quite a bit of influence, and white sacrifices sente. In thinking about this, I also looked up the 3-3 invasion in the GoGoD database of pro games. Even in situation in which black declines the ko, I was stunned at how often white would just tenuki. The pros seem to place very little value on just living in that corner until much later in the game. This main issue is that white gives up sente and at the stage in the game where this is usually played, sente is much more valuable than enclosed, small life in gote.
That said, if my experience is any guide, you won't see people playing the ko for a while. I'm in the mid-SDK range and I still don't think I've had a similarly ranked opponent play it.
Two other things that were not obvious to me at the time I was thinking about this:
1. In this position, why is it necessary for black to protect the cut with A?
- Click Here To Show Diagram Code
[go]$$c
$$ +---------------------------------------+
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . b . . . |
$$ | . . . . . . . . . . . . . X X O O O . |
$$ | . . . O . . . . . , . . . . . X X O . |
$$ | . . . . . . . . . . . . . . . . . X . |
$$ | . . . . . . . . . . . . . . . . a c . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . d . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . , . . . . . , . . . . . , . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . O . . . . . , . . . . . X . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ +---------------------------------------+[/go]
If black did not have to protect the cut, black could kill white by limiting white to one eye with B. However, without something like A, white will then play the clamp at C, get out of the corner, and get a second eye. Two things to take from this -- (1.) normally, you have to protect the cut but (2.) if you have a situation in which you have support around say D, then it may be possible forgo A for B to kill. This is only possible if the extra support allows black to contain white after the clamp and prevent a second eye.
2. The logic above does NOT necessarily apply to the large knights enclosure. The reason emphasizes the important of sente in the assessment of the small knight invasion. With the large knight enclosure, white can live unconditionally in the corner while retaining sente. The normal sequence is the following:
- Click Here To Show Diagram Code
[go]$$cB
$$ +---------------------------------------+
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . 5 4 . . . . |
$$ | . . . . . . . . . . . . X 7 3 2 O . . |
$$ | . . . , . . . . . , . . . . 6 X 1 8 . |
$$ | . . . . . . . . . . . . . . . . . 9 . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . , . . . . . , . . . . . , . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . , . . . . . , . . . . . , . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ +---------------------------------------+[/go]
And continues:
- Click Here To Show Diagram Code
[go]$$cB
$$ +---------------------------------------+
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . X O 4 . . . |
$$ | . . . . . . . . . . . . X X X O O 2 . |
$$ | . . . , . . . . . , . . . . O X X O . |
$$ | . . . . . . . . . . . . . . 5 . . 1 . |
$$ | . . . . . . . . . . . . . . . . 3 . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . , . . . . . , . . . . . , . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . , . . . . . , . . . . . , . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ | . . . . . . . . . . . . . . . . . . . |
$$ +---------------------------------------+[/go]
If black does not come back and connect at 5, white cuts his stones which can cause some significant problems. So, as long as the threat of being cut is sufficiently bad, this invasion is considered viable because white retains sente. In fact, some people will immediately play the 3-3 invasion after an opponent creates the large knight's enclosure. That said, black has other options to respond to the 3-3 invasion. So, you should look at those as well.