This morning I decided to try adjusting screw no. 1 from the pic i had posted earlier in this thread since screw no.2 elevated the rpm way too high. Bingo!
It appears that screw no.1 is the fast idle, idle up,or cold idle screw as I adjusted it to raise the cold idle to where the knocking went away and afterwards the rpm didnt go sky high!
It appears that screw no.2 is the hot idle, normal idle, and screw no.1 is the cold idle.
I think this happened when i went to the electrical repair shop to see why the alternator wasnt charging the battery, which is a story for another thread, and one of the dudes told the other guy to adjust the idle to see a change of volts on the multimeter and then the dude said no not that one the other one referring to the idle screws. So that guy probably adjusted the cold idle mistakenly too low. Thanks to all you guys for the help, i appreciate it.
Well I will check tomorrow morning again to see if it stays without knocking on cold startup.