The knocking noise is likely the result of a low oil state. Hopefully keeping the oil at the proper level will prevent any damage from getting worse. But without being there and hearing it, I really can't tell you what it is.
As for the oil leak itself, it could be coming from one or more of a dozen areas. Locating the leak is your first step toward fixing it.
To find the leak, I suggest getting a couple cans of engine degreaser. I prefer the foaming stuff. Use it to clean the engine of any exterior oil.
Make sure the oil is at the proper level, then run the car.
Have another look at the engine. Any fresh oil you see will point to where the leak is.
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