Hi, your engine is a short block A series engine, Its piston slap! Its when the piston rocks from side to side slightly on the up and down strokes. Its pretty normal to be honnest, all the later 16v engines in the polo and MK4 golf also do it.
My Old 1.4 did it badly, very heavy knocking under load, Worse when cold, Almost totally goes away when decelerating, Sound about right?
Anyway before i did my engine swap for a 16v gti engine i ragged the living crap out of my 1.4, i had it on the limiter for 10 mins at a time, After taking it out and stripping it down there was only very slight ovaling of the bores and the pistons looked fine, so its nothing to worry about.
Its almost certainly piston number 3, The only cure is a new piston, and the only time to start woryying is if its a clackety banging noise and missfiring or a loud clicking noise/burning oil badly. Any to be honnest it would take a lot of hard abuse to get it to that point.
I recomend living with it, and keep up regular oil changes as per service schedule.
Hope that helps a bit.
