Do you think I got screwed, or is it just part of the hobby?

Thanks for the replies guys you are making me feel a little better. As far as the oil and noise, the oil I have used has always been 10W 30 Valvoline VR-1 Racing Oil. I have eliminated all the possibilities I can think of with the knocking/rapping noise. Pulled the dipstick while it was running, no change. Checked the entire top of the valvetrain while turning it by hand (which was what I assembled), everything is good up top, and it is definitely louder underneath the car by the pan

Take a long screw driver, or very long extension, and listen to the motor through it. It is hard to explain, but put it touching the motor, and grip it solid with a hand next to and touching just in front of your ear. ie, make a mechanical link from your motor to your ear.
You can hear ever little noise in the motor through this, and tell where it is coming from.
Ted Detar showed me how to do it in the 60s, and it really works.