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Oh dear...engine knocking?

  Subaru Impreza P1
On my way home tonight, giving the clio abit of stick, all of a sudden losses power, i back off and the engine is making a knocking/rattling noise.

The car drives normal (apart from knocking/rattling) until it hits around 4500-5000 rpm where the power delivery isnt the same.

Any ideas?
  MK2 PH1 Valver (50% done)
bottom end? my 1.4 went the same way...

listen under the wheel arch as close to engine bottom as you can, you should hear it louder at bottom than top of engine..