Not related, but nice looking swap. I can't wait to do my LS1/t56 over the winter.

Was the cam retaining plate in place? You could move the cam in and out or side to side and all around? The cam should move in and out very very little and nothing else, period. If it's hitting the timing cover, there will be obvious marks on the cover. The chain guide is plastic or should be. You should not hear anything from the chain running against the guide.

Update; as it turns out the noise was deeper. It spun a rod bearing on the #7cylinder. It looks like the block is ok but the crank is shot. I think the customer is going with a stroker kit to replace the factory stuff, do any of the vendors on here sell rotating assemblies?

good that you had found it. From the vid it sound like it was faster than crank involvement.