It is hard to guess on a noise, but if your oil pressure is good then that would eliminate any lower end problems. Maybe you have a bent valve??
Have you checked compression?
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1988 Mustang GT
stock bottom 302, C4
10.9 @ 128 with 8 psi of Novi 1000 boost!----STOLEN
1989 Mustang notchback
Warmed up 306 with a Procharger.
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