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97 XJ makes small but noticeable knocking sound only when in gear on throttle?

Well it can't be the motor since it only does it in gear and not in Neutral. How ever it does increase in speed with RPMs. I't also doesn't have to be moving in order to make the noise. I can hold the brake in drive or reverse and press the gas and it still does it sitting still.
 
Well a motor commonly makes more rod/crank noise when "loaded" up. Chances are high that you have some wear that will only get worse!
 
Check to see if your mechanical fan is hitting anything. My fan hits something if I take of hard from a stop. Doesn't do it once I'm moving and I floor it. Having trouble trying to locate where it's hitting. It's starting to look like it's hitting one of the AC lines.
 
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