I've had that problem in my generic 350 c/w Vortec heads and a semi healthy cam.. I think the retainers are hitting the seals and causing problems. The noise will not 'adjust' away, and timing has no affect. I guess its time for a proper engine, a 360.

Thanks for all the replies, I am going to live with it for now. Like I said cam makes awesome power right off idle which works really good with the 4-speed. May eventually slip in a hydraulic roller but it sounds if for now this is just a common characteristic of these newer type cams and there fast ramp rate. I would think the springs are not keeping up but like I said by 2600 it's all quiet again. I emailed Lunati's tech line and I will see what they say.

Please, rule out spark knock! You can live with it for now but your pistons CANNOT !

Well,after talking to Lunati tech they suggested I put in stock type lifters????? So I pulled the intake and started taking the Lunati lifters apart and putting them back in there respective galley. Got to the 15th one on the intake of #8 and it was collapsed, the inner plunger was stuck at the bottom of the lifter. Took a bit getting it out and cleaned up the inner bore of the lifter with rolled up 80 grit and got it working free like the others. Double checked the lash at 1/2 turn past zero, started it up and after 10 minutes at about 1800 to get all the lifters full of oil I think my noise is just about all but gone. Took it for a short drive and 1 lifter left with the smallest of tick's. Gonna take the car out tomorrow if it is dry and see if I can get that to go away.

(1) Lunati lifter was fubared and possibly one other is also slightly & prob nearly solved w no expenditure for new parts ex gasket(s). You dug in & (hands on) solved the prob . That's a success story