valves ticking i think

Just start it up and look to see if any oil is flowing about with the valve cover off. These engines typically don't spew a lot of oil around (though you might want to be ready to shut it down if it does start to get messy).

And BTW, your engine reeeeally needs the ATF or SeaFoam cleaning teatment in the oil; at least 2 times. I would buy some inexpensive oil, put it in with the ATF or Sea Foam, run it for maybe 100-200 miles, and then drain it and do that again. I bet the oil will be black as can be each time. That is a significant amount of crud in there. I have seen worse but it is not at all clean. Looks like it was run with old Quaker State oil. After 2 cleanings, I would then put a better oil in, but add in the ATF or Sea Foam after maybe 100 miles, run for another 100 miles, and change the oil again.

Of course, if the engine has other problems, then don't bother cleaning it out! do you have any ideas how many miles are on this engine?

RRR points out that this is a solid lifter engine and they are supposed to tick steadily. All of the rockers WILL be a bit loose at rest on the valves that are closed (the ones all the way up); that 'looseness' is the rocker-to-valve clearance. You should read up on the procedure for setting this clearance; the nuts on top of the rockers are what are used to adjust this clearance. If you are all new to engines, find someone competent and expereince locally to help you with this adjustment the first time.