I just bought me first samurai, a '88 (carb) with 88,000 orginal miles, none of which were maintained properly. The stock 1.3L engine makes a very rythmic knocking sound (like a VW diesel) when it is cold and under load (normal driving or reving up). It is quiet when idling and also relatively quiet when it warms up (very faint knocking sound).

I have checked the timing, performed a major tune-up (plugs, wires, dist. cap, rotor, valve adjustment, oil change with engine flush). It still makes the noise. Rods usually knock whether the vehicle is cold or hot and even while idling. Plus this sound is even across the motor (it doesn't sound as if it is coming from just one cylinder). Any of you guys ever experienced this?

I only paid $500 and don't want to put a lot into it if the engine is about to go.

Thanks in advance for the advise.