Problems with dealership

knocking toyota

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I am having problems with a toyota dealership. I bought a '99 4runner in April, but have been taking it back to the dealership since May 18. There is a knocking noise in the motor. They have changed the air compressor and the harmonic balancer. well the 5th time I took it to the dealership, they are telling me that it is residence in the exhaust and the vehicle will make that knocking noise for-ever. I am not satisfied b/c I can't sell it with that knocking noise. Any suggestions? Anyone else had this problem? Does the lemon law for NC apply to used vehicles bought from a dealership?
 
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I have tried taking it to another dealership today. I have been to Toyota service dept 5 times to try and get it repaired. They are telling me a new exhaust will not help. They say it is just going to continue to make the knocking noise. I have started arbitration against the dealership.
 

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