Now the the temperature has drop significantly, I'm seeing 1* of knock at its highest. Would that 1* of knock cause any serious damage? or should I just put my 3.8 back on?..

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OVERKILL
P4 Perilli Tires
ZZP Pacesetter Headers
Custom Cold Air
ALT 104
3.5MPS Pulley

I would have to say you're good. 1* is pretty much nothing. Now would I wait and see what some of the experts (Radius Kid, where are you???) have to say? Yes. But in general, 1* of KR isn't really anything to worry about.

And I'm glad to see that the puller worked out for ya.

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2012 Ford Focus SE Sport
2012 MINI Cooper Clubman

I have ADHD and drive a Focus. Ironically.
Although gold dust is precious, when it gets in your eyes, it obstructs your vision.

Hell, I had 7-8* KR when I was stock. So 1*KR is really nothing.

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3.5" MPS, 1.84 Rockers, 3" DP, Frt PEM, 39lb Injs., PowrTuner, Wizair
14.07@ 98.85mph 2.180 60'

It *depends* on how much HP you're making.
One degree of knock shouldn't matter much at close to stock levels,but it will matter at higher than stock boost levels because you're cramming more air/fuel into the cylinders [more volatility].
That means more chance of an extremely violent reaction damaging engine components.
You also need to remember that you're in Michigan and haven't hit the coldest part of the year yet.
Do you think things will get better or worse?
In your case,it sounds like you would be more comfortable with a pulley change.
Do it [unless you're willing to retune].....you'll get the performance back from the colder air anyway.

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2005 GT owner [Non S/C] with a "big DIC".
Two years later and I still love the car.
Thanks Pontiac...Bleen is keen!

I couldn't help myself.

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Dubs:00 VW GTI VR6, Low and Slow 91 VW GTI 8v, Shave the Bay!! 91 VW Cabriolet 8v, bitch Basket
GP's:04 GP GT, Past now G-Ma's Girlfriend's 97 GP GT, "Project Pink Power"

Anything over 2 and I personally worry, although it is doubtful that it would actually cause harm.

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04 GTT - Retired
Best ET 13.016
Best Trap 115.56 MPH

I would not worry about 1* of KR. You will see more KR when it get's real cold or real hot out. I'm suprised your getting KR so early in the cold season when you have header's

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2004 Galaxy Silver GTP
MSP C.A.I., SLP 3.5, NGK TR55IX, 180 T-stat,ZZP SS P-log, R/T D/P w/ Cat, SLP PowerFlo cat-back, GMPP Handling Kit

LOL!
Mean cat.

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2005 GT owner [Non S/C] with a "big DIC".
Two years later and I still love the car.
Thanks Pontiac...Bleen is keen!