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I have taken a video of the engine running for the first time on non-ethanol gas atyoutube.com/watch?v=f7ImCdmCrVQ&feature=em-upload_owner I am a newbie to cars in general and older cars for sure so I would appreciate anyone watching it and giving they're input. I think the noise is the valves (stuck) and am unsure if the other noise is normal or not but I do not want to damage the engine.
If the valves are stuck and if I understand Rusty O/'Toole in my previous Ethanol post (Thanks Rusty) this is a common problem. Going with Rusty's suggestion I think I should put some Marvel Mystery Oil, Redex, Bardhal or your favorite upper cylinder lubricant to the gas and run it daily to see if it helps as the car has been sitting for some time. My questions are how much should I mix with how many gallons non ethanol gas and how long should I let it idle each day as I cannot drive due to rust issues.
Thanks for any help. -Jay

Jay, Sounds like a bad Hyd. Lifter. If a Hyd. Lifter gets dirty then they will stick. About the only way I know to fix this, is to remove the head, remove the valves take the Hyd. Lifters out and check and clean them according to Packard Engine Manual. Not sure about the other noise, but try removing the fan belt and run the engine again to rule out the water pump and generator.
Hope this helps.
Wes

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I agree with Wesley that it sounds like lifter noise, and more than 1. I'd just guess from the sound itself that they are mechanical lifters and not hydraulics and if so and if nothing is broken in the valve train, I'd start with a valve adjustment.

Good catch Owen I keep forgetting about Mechanical Lifters. So remove the valve covers (your probably need some new gaskets for the valve covers.) and it should look like this Youtube video:youtube.com/watch?v=wLwTtoYAIzc
Sorry but I can't help you on how to adjust them but somebody here will.
Wes