Well I finally found out what the
problem was. And boy it aint cheap.
The cam had worn the hydraulic tappets, all the way through one of them. That was what the knocking noise was. (that surprised all of us how that sound was so different to the usual).
Well, 1 valve, 8 hydraulic tappets and a cam gone to the race track in the sky. Was gonna cost about £1600+ to get it fixed. But managed to find a place to get a re-con head for £450 + VAT and delv.
Note to others, do not buy one of these cars unless you are very sure the correct oil has been used. £7000 then six weeks later £1000!
Definition: irony: I sold my last car because it was going to cost me £1000 to get it up to scratch, I spend more money to get a better car so I wouldn't have to waste money on repairs......D'oh!!!!!!!!