Hi Everyone-
Thanks for showing interest in the vehicle. Russ tried changing parts on the valve train (where you may recall there was insufficient oil because of rocker holes being closed which weren't meant to be closed), but could not get rid of the noise. So he took off the head and found that two of pistons were rubbing the sides of the cylinders, and feels that it was this that was making the noise. He feels that the car must have overheated at some point and messed up the clearance between the pistons and cylinders. Perhaps even the clearance was not correct from the outset (recall the rebuild had other issues like wire brush bristles abandoned inside the engine).
I know the prior owner and I don't think the car ever officially boiled over, but I do know that it ran very hot. On the drive from the prior owner's house to my mom's house to deliver the car, he had to pull over as the engine got way too hot (230 or thereabouts if I recall). So maybe some deformation occurred due to prolonged running hot. Russ found massive (1" thick) deposits stuck in some cooling passages (sorry, I don't know exactly where) which he had to chip out at great effort. He says that the quantity of deposits indicate that they hadn't been addressed since the car was new. Even though the rebuild was quite recent in miles (though not years), he did not feel all those deposits could come from the time since the last rebuild. So basically, the engine had an internal cooling problem which wasn't addressed when the engine was rebuilt a while ago.
Since much of the engine is relatively "new", I guess a lot of it can be reused with only polishing (like the cam and crank). It will be re-bored and need new pistons. His is also installing a higher capacity radiator and a better fan (it still had the originals).
Unfortunately, it will still be a few months before he is done, but I am sure he is doing his best. Both he and his machine shop are in demand, so things go a bit slower than perhaps ideal.
Thanks again for your interest.