allright guys here's an update:
first my dad and i put some spacers under the rocker so the lifter would be pushed down back onto the cam, which elimated the knock. but we decided its better to replace the cam and lifters.
so basically i tore down the engine to get out the cam and the lifters
pulled the head off
replaced allll the lifters and the cam! put the whole thing back together, and realized no oil pressure!!!
soooooo....
i took the pan off and change the oil pump
we put it alllllllllll back together for a second time! and then still no oil pressure, was a major disappointment, so we dropped the pan a second time and realizer that the main bearings and crank were shot. crap!