I may get flamed for this one, but why not rebuild it yourself? Engine work is not voo-doo magic.
A straight forward overhaul is not all that difficult. Yes you can get anal about everything inside, and some would suggest anything less than el-perfecto is a waste, but to just replace bearings and rings and a valve job is pretty common stuff.
Many, many engines have been rebuilt by first timers. (not sure if that applies) But as long as you pay attention to detail it'll work out fine. A old block doesn't always need bored, might just need some clean up of the ring ridge. Your compression seems fine so unless you plan on racing it a stock rebuild should work.
The running rough part probably has nothing to do with the knock, mosts likely carb and ignition. But pull a valve cover off, you might just have a bent pushrod of rocker stud off.

Install a factory quad intake and better carb if you want during rebuild, but the thing ran for how many years as a stock 350 2 barrel?
Or for what you'd save with DIY you could upgrade the intake, ignition and exhaust all at once.

Just my 2 cents.