Chaser
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Thanks for the replies.
Sorry, should have mentioned in my earlier post, that the diesel mechanic said that the noise definitely didnt sound like tappets. He thought the noise was more mid engine, not big ends, maybe a piston pin.
The noise can be heard when you drive the car with all the windows closed. I dont have enough experience to be sure, but I thought tappets were fairly quiet and can't always be heard inside the car.
Currently planning on a replacement engine, as the cost to get the engine stripped means it isnt viable. Taking the engine apart I could do, but getting it back together and working is probably beyond what i can do and I don't have the cam alignment tools. Had a good read of the BMW TIS for this engine on the web last night. It looks rather tricky.
Beginning to sound like crank to me. Slightest movement allows valve piston contact as their very close anyway. You could remove the sump etc and check, maybe you could be lucky and just replace bearing shells.