you should be able to pry it into a spot where it doesn't knock.. usually it's just a matter of jiggling it around... if that doesn't work I'd suggest bending the mounting points so it holds it further away from where it's knocking...
wraping your exhaust is just going to dull the noice of the knock not make it go away...
and I wouldn't recomend duct tape... it'll melt and probobly put off some disquisting fumes.
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