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With a 2003, you should be past the build date for the engines with the bad rod bearings, but you could do a little on-line research to find the exact range of dates for this little nightmare.
Yes, your vanos could be blown, causing the noise from mis-timing of the cams, or specifically from someone adjusting the valves with the cams mis-timed from a bad vanos. Ours just received its third vanos unit ($5,000 part) at 100k miles. You really should have a good independent BMW specialist diagnose it.
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