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I would leave the valve covers off, and run it until it starts clicking. Then use a stethoscope or long screwdriver to listen to each rocker arm and at least narrow it down to the guilty item.
Then try to figure out what is wrong with just that one part.
One thing you mentioned though that perks my ears.
They welded the cam shaft and reground it. That makes that dude suspect to me.
I would leave the valve covers off, and run it until it starts clicking. Then use a stethoscope or long screwdriver to listen to each rocker arm and at least narrow it down to the guilty item.
Then try to figure out what is wrong with just that one part.
One thing you mentioned though that perks my ears.
They welded the cam shaft and reground it. That makes that dude suspect to me.