Just finished for the night.
Short answer, bad check valve between cold water and hot water. I could blow air in both directions through it.
Long explanation tomorrow.
Removed all the insulation and found a second check valve at the end of the hot water loop. See diagram below to see the actual setup I had.
I cut out a lot of stuff in order to make a simpler setup considering the situation. I cut out both check valves because I kept getting a feeling that at least on of them were bad. I was correct. The check valve between the cold water incoming pipe and the hot water loop was bad. I could blow as hard as I wanted through it backwards. Ha!
I found the problem with the noise!
I finally got everything back together, really late as you can see, and by 1:30 am was getting ready for bed. See the new and current setup below.
I need an easier way to swap out these check valves without cutting and soldering. Any ideas?
Also, in our hot water loop, there was a lot of greenish white build up in the pipe. Maybe 20% full. This house isn't but 7 years old. Any way to clean that out besides replacement?
As of this morning, no more jack hammering noise in the floor.
I do hear a small hum when hot water is used when I am down by the hot water heater and I assume this is the noise from the check valve when cold water passes through the check valve. Not a big deal.
Also, any reason I even need two check valves? Or even one check valve for that matter. I assume I need the one between cold and hot in order to keep hot water from getting sucked into the cold water line if we are using a lot of cold water (since we have a pump creating a little bit of head) but I go back and forth on this.
Thanks for all the help so far!