  The photoproduction of K0 on the deuteron has been investigated with the
inclusion of YN and KN final-state interaction (FSI), as well as the
pion-mediated process gamma d --> pi NN --> KYN. The YN rescattering effects
for the inclusive cross section are found to be large in the threshold regions.
Polarization observables show sizable FSI effects at larger kaon and hyperon
angles. It is shown that the extraction of the elementary gamma N --> KY
amplitude is possible in the quasi-free scattering region where FSI effects are
negligible. Furthermore, the cross sections in this region are large,
indicating that measurements in this kinematical region are favored.
