Ran out of ideas here. I opened things up...sound seems to be comming out of the top end below the intake. Cams all look good and clean. Even went as far as replacing the power steering pump..no luck. Sound seems to go away when its raining out side?

 

Have you pulled the valve covers on both sides and inspected all the lobes on the cams? Usually, this is the symptom when one of the lobes is worn down. May have to get a head rebuild. I really hope this isn't your issue but if you have the valve covers off, inspect them.

http://forums.audiworld.com/showthread.php?t=2799543

http://www.audizine.com/forum/showth...of-a-3.0-(long)

 

Thanks for the info...WOW! big read and good info on the threads. It sounds verry familiar...passenger side is where mine seems to be.

I did a timing belt replacement about 20K ago. (I'm actually doing it again because my water pump...started to go. btw, this was a new waterpump with the timimg belt kit. (disapointing!))
However at the time, I really made a big effort to inspect all of the cams. All of them looked good, no visible wear, and clean. I will look again 2 night.

I am looking into the vent side of the valve covers and intake. I have noticed a lot of sludge and pluggage, but Im guessing this has nothing to do with it. Seems like ive read that this could effect lubercation? any ideas? How about cam valve adjusters?

 

I verified the wear on both inlet and exhaust cams. Everything looks great. Could I be getting low oil pessure or low flow?

 

You'll prob need to post in some more active forums. The lobe wear issue is due to low oil reaching that part of the CAMs though. When my Passat's oil pump when bad, I got chattering at the top as well. May not be your issue at all though.
If the CAMs look good, that's great news but I'd continue to investigate or take it to a good indy shop to find out for sure.