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No it wouldn't have been possible to drive the car anywhere if the chain broke or jumped teeth, basically the top end (most likely confined to the left bank) would be toast. Cam, valves and a host of other parts in need of replacement.
Most likely you need a new tensioner. Definitely have the upper rails checked because if the tensioner was letting the chain rattle as bad as you describe it is very possible that one or more of the rails could have broken. Sometimes they only break a small piece off which can easily lodge in a sprocket and you're screwed. If you have fair DIY skills you can check the condition of the rails yourself - a broken end near the sprocket will be easy to spot as the rails almost touch the cam sprockets - age is not too difficult to read either. White = new, yellow/amber = mid-life, brown =time to change and last is beer bottle brown/black = borrowed time. All you have to do is pull the valve covers, driver's side will require the two fuel lines between the fuel cooler and fuel distributor be removed.
Hope this helps.
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Mike Tangas
'73 280SEL 4.5 (9/72)- RIP 
Only 8,173 units built from 5/71 thru 11/72
'02 CLK320 Cabriolet - wifey's mid-life crisis
2012 VW Jetta Sportwagon TDI...at least its a diesel
Non illegitemae carborundum.
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