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You say your living room walls are primed with Kilz. That means that the walls are no longer porous. For knockdown to work best, it should be applied over a wall that is still able to absorb moisture to some degree. This is what helps the newly applied knockdown to stiffen as moisture is sucked out, so it will flatten nicely without smearing.
In your case, if you are doing the spray type knockdown, you will have to be very careful how you do the knockdown part. It will need extra time to stiffen since the wall itself will not be drawing out the moisture. You are depending more on the air in the room - temperature, humidity, etc. will be factors. So go easy and test small areas first, more inconspicuous places, to see when the time is ripe to flatten.
When you do flatten, you may need to consider using a narrower tool than the big wide blades usually recommended. Good luck!
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