Recon it'd matter much? provided it wasnt assembled dry, shouldnt hurt as far as i know. plugs out is probably safer though dont think it'd matter
I really think its a lifter not bled or stuffed, listen to the knock speed, to me it sounds too slow to be crank speed.
SOLUTION to find out, use timing light, does the knock have the exact speed as the flash of the light? if so, its cam/lifter/valve problem. If its twice as fast as the flash you have a bottom end problem