Any Pontiac guys on here? Need insight.

I've been around a few Pont V8's in my early days and i believe you have a cam clearance issue. I know pop doesn't remember the noise but i believe it's been there since the build. I personally didn't have a issue with stock or aftermarket cams on my builds, but there are several factors that can contribute to tight clearance. The rear plug, different thickness thrust plates, aftermarket gears and even the FP eccentric. Been 40ish years since i was into one, so i'd suggest looking into some Pontiac sites to get the latest info. The fact that you found ''some'' metal in the oil leads me to this conclusion.

Good luck with it. I've always had a fondness for those cars.