Very sadly if all described above will be real cause, however, my engine dont making excessive noise at this rpm, just vibrating. If chain will need to be replaced, I think that instead of this job I will better buy complete engine again. Set from E36 overhere will cost around 800 Usd.
Feelings with M42 after M10 are not what I was expecting. More HP is great, but my M10 was running more smooth. Plus fuel consumption (within city) are same for both engines. This I cannt understand - how Carburetor engine can take same fuel amount that Motronic setup.