Engine knock. Not normal blaster chatter...

I decided to not attempt to measure the cylinder since it is something I have never done before. I did however take it to a machine shop to have the bore & piston measured and they noted that they were in spec and not the source of the noise.
The bottom end still rotates with no resistance.
The piston & wrist pin have a tight fit with no play in the bearing and the rod does not have any up or down movement. Looking at the inside of the case and at the rod it does not look like there is contact with the two on the "thrust" ( i think that is the right word, when the piston is going down & up).
 
Then it is either something under the clutch cover or a main (saddle) bearing on the crankshaft.

Either way, the clutch cover has to come off and if you don't find anything under there, the cases have to be split.
 
Is it possible for it to be running super rich causing it to back fire? I noticed today that when it makes the knock that there is a puff of smoke that comes out of the pipe.

I have the pilot screw set at 1 1/2 out I will check the jet sizes tomorrow.
 
could this be detonation he's hearing ???? just a thought
 
It could be detonation but unless he's trying to run diesel fuel in it, has the head shaved to nothingness or is running 12 degrees of timing advance I wouldn't think detonation is a problem. I would suspect, because the engine was run out of oil before, a crank bearing is toast.

The smoke could be coincidental or you could have something going on with a rich condition. I would pull the clutch cover off anyway to see if there is anything going on in there. Once the clutch cover is off, you can fell if there is ANY movement in the crankshaft without the clutch gear drive dampening it out.
 
Pulled the clutch cover, no movement in the crank. Pulled the stator cover and no movement in there also.
Carb has stock jets.
Did a TORS delete and Vitos idle screw kit and it runs perfect now. I think it was some kind of funky adjustment with the TORS or something. I did have to back off on the pilot air screw 1/4 turn and now it idles great and rides smooth.

I did not hear the strange "knocking" noise when I took it for a easy ride around the block.

Thanks for all the input guys.