Shot penned is kind of like sand blasting. It's a process to remove imperfections in the machined surfaces of engine internals. Oh ya it also forges the part making it much stronger than before.
knife edging machines the counterweight on the crankshaft to make it more aerodynamic. a slight knife edge will have the forward side of the counterweight rounded off a little. a full knifeedging will have the counterweight look like an airfoil. this keeps oil from sticking to the crank and ends up with a few more hp and more of an ability to rev higher.