Well the rebuilder had me pull the rear end and transmission and bring him the transmission that he rebuilt. He found .050 end play on both shafts in the front and rear. He fixed it and I got it in today.
The knock is still there in 3rd gear only just like it was to start with. No difference. I have $4,000 into this between the rebuilt long block and rebuilt transmission, not counting gas and time, grease, gaskets, etc... I asked him to come and listen to it, even offered to give him $100 for gas for the 90 mile drive from Skokie. Sure wish he would have done that. Well I won't make Sharon now.
I added a video of the knock...
https://www.youtube.com/watch?v=VMb7d...ature=youtu.be