Tech took off the valve cover and said he had never seen so much sludge caked inside one. I know the previous owner probably didn't change the oil much or have any routine maintenance done so this isn't a big surprise. Using a stethoscope my shop manager determinded that the rear 2 lifters are the ones that are collasped and making noise. Parts are here and they should get to it today along with the engine mounts. Big shout out to Tim for his latest blog post; it is really nice to have a visual (especially of a nice, clean motor!) to look at and see how everything is suppose to go together.
I'll update this thread with pictures when they get down into it.