there are 3 guides on a KA (under the valve cover by front of the cams, one inside the distributor, then one by the timing chain tensioner) , i'd make sure none of those are getting hit because they are known for problems, then make sure its not rodknock or maybe spun bearings. Take it to a shop and they use a special stethoscope tool to pinpoint if its rodknock or not, but surely there are probably other ways too.
Try to rule out your options before it gets any worse :\