Okay. That is progress. I suspect you have two issues. The knocking noise coming from the distributor is most likely something to do with the distributor itself and not caused by something else. I have seen a lot of distributors make a knock or clicking noise and it was the rotor hitting the cap. Start it up and put your hand on the cap and see if you can actually feel it.
I would then remove the cap since you just replaced it and see if there are any marks on the inside of it. If not, it could be an issue with the gear or shaft.
Next issue of stalling in reverse, I think you are correct that the carburetor is probably not adjusted.
However, start with the knocking noise and once that is fixed, run through setting the timing and then adjust the idle speed and mixture. Again, the smoking if gray or dark smoke is most likely too much fuel.
It is important to set timing first, then adjust the carburetor because timing will effect your carburetor setting.
Let me know what you find. Thanks
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Thursday, September 3rd, 2020 AT 10:14 AM