Only knocking on deceleration usually means a rod bearing. When you re-assemble the engine, make sure and plasti-gage the rod clearances. What about the wristpin bushings, is there any play in them?
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Good luck!
Brad R.
1992 L.X. 5.0 coupe
MODS: A few little bolt ons 
New Best time ...11.60 @ 128 mph @ 2000+ ft altitude.
Rice Haters Club member #39
Users rides #2542
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