Hmmmm......I knit during class, meetings, movies, you name it. I have yet to have someone tell me to not do it. Oh no wait, I lied. One time at a women's consciousness raising session, someone asked me to stop, it was too distracting. We were sitting in a circle facing each other. She was totally nice about it too. But most of the time no one even notices me.
I'd say if you are in a big enough room of people in stadium style seating kinda thing and maybe the lights are out, I would go for it. If its a more intimate setting with jsut a few people around a table, i would just ask folks "Hey, do y'all mind if I knit while we talk?" and see what happens. :shrug: