The LX 865's had two different setups in them. Internally I don't believe there was much of a difference, but the fuel systems and the air cleaner setups were different. I know at one point they also switched from a 1/2" head bolt to a 9/16" head bolt. They are a parent bore block, but a machine shop should be able to sleeve the bore if it is chewed up. Have you narrowed it down to a particular cylinder? You can start the engine and crack injector lines to see which one makes the hammering go away. I have seen fuel problems make a make an engine knock. It may be worth pulling the injectors out and having a shop pop test the injectors to make sure they are atomizing the fuel properly and at the correct pressure. This may save you an engine overhaul. If its not that then its most likely a tired engine. How many hours are on the machine? Has anyone used ether on the engine when it was hard starting? The NH engines don't like ether at all. I suspect it had some problems before it made it to the auction, usually machines are at an auction for a reason, someone wanted to get what they could out of it.
