From what I've described, does this sound like timing chain/rails/sprockets to you M42 experts?
How tough of a job is this for the newbie engine mechanic?
How much will all the parts run me?
Sounds like the timing chain and such.
Anything else making noise like that, usually results in a completely dead engine.
Get part numbers from Realoem and check your favorite parts source.
Hold onto something though, the parts get expensive VERY fast. Especially rails. You can EASILY top $500 in parts, especially if you need a timing case.
Can it be done by someone new, yes and no. It is a 2 person job in places and there is a lot to do.
You have a choice of going top down, or bottom up.
Top down means nearly the same amount of work, but also pulling the head. It may save you from lifting the engine though and makes doing the profile gasket easier. Bmwman91 and myself both went bottom up, lift the engine, and put the profile in the hard way, by wedging it into place. Worked for us.
Either method means pulling A LOT of components off the engine. Basically the block and its internal parts, head, intake and exhaust are all that is left in place. Everything attached to the motor other than these are pretty much removed. It is even wise to pull the radiator (may be necessary).
To pay a shop would cost almost what the car is probably worth. Find someone with some auto knowledge and go at it. Study realoem, and pick an angle of attack.
It is nothing incredibly difficult mechanically, but m idea of difficult may be different than yours, study up before you start.