I got the car in the air and checked the oil pressure with a mechanical gauge. The pressure at idle is about 20psi and the pressure at 3000rpm is about 70psi.
Here is the issue... the needle is bouncing all over the place. I have the mechanical gauge hooked up were the stock sender is located.
From under the car, it doesn't sound like the knocking sound is coming from the oil pan. It seems like it's coming from the middle of the block which would indicate it's the piston itself. I do not hear any noise from the cam gears. I checked this out with a stethoscope and a length of hose. But not that I see the oil pressure jumping around.. that's seems a bit concerning also.