Lifters Clicking

[SubUrban Legend]

I have a 99 Surburban 4X4 with 5.7 engine with 212,000+ miles. Over the past few months, the lifters have been tapping on start up. It only happened once in a while and went away very quickly. As the colder weather set in, they clicked more often and for longer periods. The oil pressure showed 60 lbs at start up and maintained 40 lbs at speed and 20+ at idle. The lifters would stop clicking as soon as the engine started to warm up and the engine would run normally afterwards. I started it last Sunday and heard a squishing sound over the lifters. I looked under the hood and saw oil squirting out of the oil filter. The gasket of the filter was blown out. I replaced the filter and the same thing happened. I am wondering if there is a bypass or pressure regulator in the oiling circuit that has been sticking or jammed up and causing the blockage to the lifters and now the whole engine? I am thinking about a replacement engine as the old one has 200K+ miles on it. Where is a source for a good drop in replacement for the stock engine without costing an arm and leg?

 

Larry S.