Well if more than one knock sensors are detecting knock then he probably is pre-detonating for some reason. Could be running lean, could be carbon build up, could be running hot.
The strange thing is, is that the pcm is advancing timing again at 5500. The higher the rpm, the more dangerous knock is.
When I was tuning with my FIC, anything above 12.0 AFR would start pinging in the upper rpm range. It sounded like gravel hitting the firewall. I didn't ever stay on it to find out, but it didn't feel like the PCM was pulling timing.
I've always wondered how a knock sensor works, I need to look this up.