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I think the valve or lifter suggestions are the right ones. Whenever you get an answer like that. Do a comprssion check and a vacume test and maybe a leak down test. That will generally give you an idea of how your over all engine health is.
Put a timing light on it and see if the timing mark is inconsistant for timing chain status. I'm guessing your oil pressure is good.
I agree with an earlier post. maybe you should find out what the mechanic really means before we throw him under the bus.. I think the original poster isn't asking the right questions and may not have the mechanical knowlege or expertise to really understand what the mechanic is trying to convey to him.. It sounds like a communication issue... valve float can destroy an engine if it happens under a load at higher rpms.. you may never get there putting around town but it could happen pretty easy getting on a highway.... or he's just a no good dirt bag trying to rip you off!..
Ramstein.. Well any maintenance for american cars overseas will be expensive.. especially right outside of an Air Force base they know we have nothing better to spend our money on..
What I would suggest is find another mechanic a little further from the base for a second opinion?