Need help!

I have installed a brand new engine purchased from michigan motorz in a completely rebuilt 1978 mark twain. I have reused the fuel pump and carb(rebuilt) what i thought was a stern drive issue ( Gimbal or u-joint) was not after pulling the drive. the engine still has a tick to knock after engine reaches operating temperature sounding like its coming from the rear of the block. Also advancing upon increase in rpm. may also slightly increase with load not to sure... the engine has been timed (twice) the gas is from last year with stabile added and as of yesterday, octane booster. the plugs look fine. the engine has 3hrs on it and the first two i didn't notice anything because it was kept at such a low idle. upon checking the engine oil dipstick i did notice VERY trace amounts of metal filings. My question here is where to go next..... Im stumped and beyond frustrated. ANY help would be greatly, greatly appreciated. Thank you

Re: Need help!

Contact Michigan Motors and file a warranty claim. It shouldn't knock.

You may be required to take the engine to an authorized Mercruiser facility for analysis.