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I would seriously check the bushings for the flappers in your Y-pipe.
If it's coming from the top of the engine, the head and valve train end, it sounds like a valve, rocker or lifter problem. Is your oil level correct? Hydraulic lifters need the proper grade and level of oil to open and close valves. Low oil level or the wrong grade, too heavy or too thin could be the cause. It could also be as simple as a routine rocker arm/valve lash adjustment.
Oil weight sounds right. By middle of the hash marks do you mean it's on the full line, or in the area between full and add? Just want to make sure since I can"t see your particular dipstick. If it's not on full and you just changed the oil add some oil slowly until it reads full. Pour a little in wait a few minutes and recheck the stick. Probably take less than a quart. Also there are different types of lifters (solid and hydraulic) If solid you need shims and such. If hydraulic procedures vary. Lots of good stuff on youtube about adjusting lifters and rocker arms. Hope it's just an adjustment if the oil fill don't work. 40 psi while running is about right.
