I have now ruled out that it is valve train noise. I adjusted the exhaust valves slightly on the tight side but the ticking sound still persists. Interestingly you can't hear it with the hood open but it can be heard while sitting in the car. At idle it is barely noticeable but when you give it some throttle it gets a louder. Also when driving, when you let off the accelerator it goes away but the sound reappears when you step on the accelerator.
I am totally baffled by this and am to the point if it is something truly serious such as something internal, I'm not going to worry about it since it will cost more to tear into the engine than what I could probably find another one for.
But if it's something simple I wish there was someone who can steer me in the right direction.

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DJ


84 300D Turbodiesel 190K with 4 speed manual sold in 03/2012