Lifters tick, you sound like a a knock, heres another z with fatal noise, compare
http://www.youtube.com/watch?v=hlkOkB6t6Fg
Disconnecting cyls like in this vid can help decide, with a knock the noise usually subsides when the bad cyl is located and disabled, try that.
Compression being fine is no indicator in many cases, the damage is above/below the pistons.
Lots of things get torn up when engines knock, metal shavings get into everything, the oil squirter's below the piston get damaged, you will need a new crankshaft and several rods, in my opinion, rather then spend 4x the money rebuilding, go find a used engine, perhaps one from a less abused J30