Horrendous noise after sitting for a week...

Video First:

[ame="http://www.youtube.com/watch?v=qDnjiYEQRfw"]20130825_225821.mp4 - YouTube[/ame]

I am not getting much response at slantsix.org so I am hoping someone here may have some suggestions.

So what I have so far is a horrendous noise while the engine is idling. If I accelerate past idle the noise goes away. The engine is a fresh rebuild less than 500 miles on it. I have done nothing mechanical aside from burning out the wire from the starter relay to the ignition switch. I replaced the wire and the engine started but you can hear the noise in the video. I have checked the valves and they are adjusted 15 and 17 as per the OCG 791 cam card. When I held my hand on the starter I could feel grinding. I brought to autozone and let them hook it up and I could hear a light grinding in comparison to the new one. I also tested with a screwdriver against my hand and the starter and I could feel the vibration in the screwdriver. I used that same technique on the block and just felt the consistent rumble of the engine.

All of the valves are opening and closing. Each exhaust runner is hot to the touch which tells me I am getting both intake and exhaust strokes. The engine appears to be idling fine except the horrendous noise.

I believe it could be the starter but when it was tested the gear engaged and disengaged correctly. The other thought I had was maybe the flexplate to converter bolt came loose? My other idea is could the starter stick and knock while under load? I need some guidance at this point I do not want to tear down the engine just to find out it was something small.