Universal M35

[pzmaria]

Just finished an overhoul of Universal M35 from my Catalina.
Replaced pistons, rings, connecting rods bearings, did the cylinder wet honing,
reconditioned head and valves, installed new injectors with new copper washers. Engine is running now but I'm not happy with the sound it makes. It's like a knocking sound. All bolts, nuts and injectors were torqued to proper values. When engine is running there is some fuel coming from underneath one injector even thou it was torqued to proper value. On top of that when I removed oil dipstick with the engine running it keeps splashing oil through the dipstick hole. That means there is a pressure in the oil pan. Is that normal?
Any idea what to do with "leaking" injector? Should I apply more torque to it? I hate to either strip the thread or disform the washer to the point that it's stuck in the injector hole.
Thanks for any input.