TNDeerHunter,
Your Knight will work just fine with loose powder. In fact, I highly recommend using the CleanShot loose ffg powder. I've been using the loose Cleanshot in my Knight USAK for over a year and am extremely pleased with it, as it has proven to be reliable, consistent, and Clean. All it takes to clean the gun after a full day at the range is a few patches, some Simple Green/water mixture, and maybe 30 minutes of time.....SWEET!! <img src=icon_smile_big.gif border=0 align=middle>
With all that said, I don't recommend the Cleanshot pellets for any reliable shooting. I've known people with too many complaints about their inconsistancies to use them for hunting or precision target shooting. However, since you have some already, you could go ahead and start with them to help you get used to the gun and to break things in a little bit - plus they will get you in the ballpark for an initial sight-in, you just can't count on close groupings.
To be honest, I really don't like any of the pellets - even the Pyrodex. Not only do they not allow powder adjustments in increments of less than 10gr, but the only misfire I have had to date, is with the Pyro pellets. Fortunately it was at the range, so no meat was lost - but it made such a wierd sound when it went off, that I got a lot of strange looks and questions when the range went dead. So I definitely consider loose powder more controllable & reliable.
Now, my opinion of CleanShot may change once I can get my hands on some Triple-7. If it lives up to Hodgdon's claims of cleanliness and power (up to 15% higher than Pyro or Cleanshot), I might well switch. But it will have to prove itself to be every bit the shooter that Cleanshot is before it goes into a hunting situation in my guns.
"Every moving thing that liveth, I give unto you as meat" (Gen 9:3)
Trust God..........but keep your powder dry!