Chris,
I know exactly what the problem is. I just fixed this problem on my car. Check out my thread, with video. My car sounded just like yours did.
http://www.m42club.com/forums/showthread.php?t=8237The problem is, your not getting enough oil pumped into the top of your engine. After replacing all the hydraulic lifters and realizing that did not fix the problem. Then decided to replace the oil pump. Once we got into the motor, we realized that the timing chain and guides had been replaced. (if this hasnt been done on your car, then thats the first place to look.) That had been done on my car by the previous owner. HOWEVER, the mechanic that did the job, had left all the shrapnel from the timing chain guides in the oil pan. That stuff was getting caught up in the oil SUMP and couldnt pump enough oil up into the top of the motor. So, pull your oil pan off and look for debris down there. Drain your oil first, of course. Dont drive your car like this, until you fix it. Good luck!