Hi CTH and BENZ Dr-
Thanks for the messages.
CTH , yes I did adjust the valves. They were a little out but very good.
Benz Dr-
Boy you got me scared. I did exactly as you said, I unplugged individually each spark plug and listened for the noise. It was still there. I'm so relieved, rod knock is a big deal.
So I listened again for the noise with the stethoscope. The noise is most pronounced at the front of the engine,down low, where the lower driver side timing chain guide is.

I took the cylinder #1 spark plug out. I used a piece of thin rod to find top dead center.
I noted the distributer was at cylinder #1.
Then I looked down at the marking on the balancer wheel/pulley. it's showing approx. 11 degrees off.
I believe either the balancer is off ( I heard the dowels can wear out in their holes) or the chain is stretched and flapping against the worn out guide.
So tonight I'm busy taking out the radiator and water pump to get at the guide dowels.
I'm going to get it apart and report back on what I find.
Any comments are very much appreciated. Thanks