I don't think its such a crime using the HV pump on a small block. i always did.
i never lost a motor.
the bubbles seem to be just from the
oil drip from the spring retainer down to the head.......oiling looks rather normal to me.
the squeek/click has me wondering if there isn't a cracked rocker somewhere. have you checked to make sure the pushrod isn't coming into contact with the rocker at max lift?
is there a mechanical fuel pump on the motor?
i have had loose concentrics and fuel pumps make those noises.
it sounds like something hitting.......