It sounds an awful lot like a noise I had when the starter gear was not retracting. I use a piece of 3/8" vinyl hose to listen for engine noises. I point the end at various points of the engine and find it is extremely directional.
A HUGE THANK YOU to truckernix!!! The starter gear not retracting was exactly what the noise was. The return spring is missing, and as soon as I pulled the starter pedal back the noise went away. So much easier than tearing the engine apart for nothing. I love simple fixes to what seems like a major problem. Engine runs perfect now. I just need to get a spring, and set the tappets sometime on a warm day, and work on the throttle linkage which is binding on the floor and not letting it idle down. Plus the spring doesn't appear to be in the right position either. No pics in the shop manual that I could find. Thanks again for bailing me out.
