Some people love MMO and some people hate it. Naturally MMO or any other additive will not "cure" a knocking rod or worn out rings. However it is my opinion that when added to fuel it can help lubricate the top side of a small engine and help to free up piston rings and remove built up sludge and carbon deposits.
Something else you may want to consider is the "knock" that you describe may be cam shaft knock, caused from worn out/missing shims on the end of the cam. Cam shaft knock is most noticeable at slower engine speeds and often times will seem to "go away" at full throttle.
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