I would bet that one of the lifters is plugged up. What I would do before I spent a bunch of time and money on it is to flush the oil system out.
Just get some Kerosine/Diesel fuel and mix it 50/50 with new motor oil. Leave the old filter on. Drain the old oil out. Fill it to the full mark with the mixture. Start it and run it just above a low idle until it is good and warm. Usually on an air cooled motor that would be 10-15 minutes under no load.
Then just change the oil and filter like you always would. I have had this fix many, many hydraulic lifter noise issues over the years. I had a 1952 Chevy Pickup that told you to do that in the service manual every other oil change.
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Today's Featured Article - Earthmaster Project Progress Just a little update on my Earthmaster......it's back from the dead! I pulled the head, and soaked the stuck valves with mystery oil overnight, re-installed the head, and bingo, the compression returned. But alas, my carb foiled me again, it would fire a second then flood out. After numerous dead ends for a replacement carb, I went to work fixing mine.I soldered new floats on the float arm, they came from an old motorcycle carb, replaced the packing on the throttle shaft with o-rings, cut new ga
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