Was the block cleaned extensively after you got it back from the machineshop? If you did the assembly you need to wash the block extensively to get some of the machining debris out.

But a little sparkle should be in the start-up oil. Especially if you used moly lube etc on the valvetrain and such.

 

Started it up cold this morning and there was a distinct pecking coming from inside the motor. Im afraid theres a spun bearing so im pulling the motor back out. cant be to careful with a warrantied $2k+ block.

 

Where at inside the motor, you could have a valve adjusted wrong and its just the free play in the lifter/pushrod/rocker arm, or something like that. Before you do a ton of work, try and better diagnose whats wrong.

 

IMO there is just too much metal, plus if I totally blow the thing and spin alike 3 bearing by running it further to try and diagnose it the engine builder says he wont honor the warranty.