Ford 961 engine help

Hello all,
This is going to be a bit long-winded so bear with me. I have a 1958 Ford 961 4cyl gas a buddy of mine gave me. Engine was stuck, got it free and running. It starts right up and everything works as it should but the engine has what I can best describe as a knocking sound. It’s a little clicky up near the rocker arms which I thought was what I was hearing but no, there’s a distinct knock. It almost sounds dry. I tore it apart again (never removed engine but took head and pan off) and checked bearings, oil pump, connecting rods. The knocking seems to be coming from lower front but it’s hard to tell for sure. I was thinking governor and I looked at governor from backside and the balls in it seem to have flattened sides to them. Could that cause the noise I’m hearing? The governor seems to be a PITA to remove and not a cheap part to replace.

I know it’s hard to give advice without hearing it but I’m at a loss and I don’t want to put more money into it without a better idea of what is causing this. ANY advice or suggestions for figuring this out would be GREATLY appreciated. If you need more info let me know but that’s the best summary I can do. Thanks!
 
Try pulling off 1 plug wire at a time and see if the knock changes. Could be a wrist pin knock.
I have a spare gov assembly. Not bad to change; but you go in from the front.
 
I was thinking governor and I looked at governor from backside and the balls in it seem to have flattened sides to them. Could that cause the noise I’m hearing?

Worn spots on flyballs will cause erratic governor operation but not likely cause a knock.

For less than $15.00, a Mechanic's Stethoscope will prove invaluable when trying to diagnose engine sounds.
 
I had a 960 I bought w/what the owner said was wrist pin knock, Using the old yard stick listening trick I thought it was higher. Turned out to be 2 sleeves were loose & moving up & down. I rebuilt the engine w/new sleeves & Lock Tite & that fixed it.
 
(quoted from post at 16:36:36 03/26/18) Try pulling off 1 plug wire at a time and see if the knock changes. Could be a wrist pin knock.
I have a spare gov assembly. Not bad to change; but you go in from the front.

Unfortunately I tried that and it didn’t seem to make a difference
 
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