Hi again Karl. I just re-read most of this thread, this one is still not responding.
Overall, I think it sounds like this is a tired high mileage engine, and it's a Ford twin plug. How many miles on this one, Karl? IF the engine is getting pretty worn, well, I would say that's the real story. I agree w/ 4 wheel Bill, a leak-down test is likely in order, it will give indication of ring seal and condition of valves, I'd do a compression test too.
Can't re-time ignition on this one, it has coil pack not dist. The knock--is it a higher or lower pitch sound? Higher pitch is likely pinging or spark knock, lower, could be main bearings I think (sure hope not!)
If it's pinging, either the plug heat range is too high (have you changed them) OR it's wayy too lean under load, OR there is a lot of carbon/crud in the chambers that has driven compression ratio up. I don't know if this one has a knock sensor. IF this is a high mile engine, and you are running full synthetic oil, then oil might be getting in the cylinders, oil has awful Octane properties! Of course I'd expect to see smoke and oil usage w/ poor oil sealing.
We've been discussing details about the Groove job & associated stuff, but gut tells me it's time for just basic mechanic analysis w/ your Mazda. I dont remember if ya told how many miles on this Ford 4 cyl, and it's overall condition. If this one is tired then it's time to find out what you are really working with. Trick parts and mods can't fix major wear IF that's the reality. XADO might help out some with friction surfaces (bearings, cam lobes, anywhere oil goes that is worn and metallic), only fix w/ valves is valve job.
Anyhow Karl, that's my 2 cents worth, I would want to establish the engine's state of health. We work with what we have--my Subaru has become a Lab Rat on wheels. but it has a rebuilt engine.
Maybe someone else has input to share here?
Karl, I still say you did one of the cleanest lookin' Grooves ever!
Tracy G