Well, actually it does not run anymore...but that is ignition related. I disconnected the coil to test the compression on that cylinder 3. I got 120 psi, which I think is ok considering the altitude over 5000 feet, the cr of 8.5:1 and the fact I measured it cold. When I reconnected the coil, I got no spark, no more ignition at all. Weird.

Had I read a little more before doing my compression test, I would have saved myself a $89 coil...
hopefully I did not burn the CDI box too.

http://forums.pelicanparts.com/uploa...1138414059.jpg

correct posting aurel...i always disconnect the 2 wires that have sm nuts holding them to the top of the coil so as to not damage coil, cdi(if applicable type car) and I unplug the coil wire out of the center top of the dizzy just to be safe...

Did you ever figure out what the issue was? Rod bearing, lifter, or tensioner?

Yeah, Rod bearings. I rebuilt the whole bottom end back then...

Was there any metal flake in the oil?

I would think with that amount of rod knock you would find some flake in the oil.