New motor, sounds awful?

I have seen this happen in a small Chevy once and the guy called me to have me come and lash his valves because the guy that built his engine couldn't. I never would have guessed it but the noise would not go away no matter what. They finally tore it down and found the pistons in the way yours are. I still can't believe the engine would even run with the valves making contact like that but it did. J.Rob