Good to see you back.
You have to be able to differentiate between a diesel knock and a big end/small end etc knock. Diesel knock is normal in these motors a long as it's not extreme. The oil light may or may not be telling the truth and the only way to be sure is to connect a gauge to the motor. Oil appearing at the exhaust is a worry. While the head was off I would have pushed out the pistons and checked the bores and rings for wear and other problems. It's diffficult to diagnose by remote control but the mechanic that did the head job for you should have checked the motor out thoroughly.
The bottom end of these motors are bullet proof but if it's clocked up a lot of km and hasn't been well maintained the rings could be cactus. How does it start? Does it have good compression?
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