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Please help my friend out

What you have is an upper end valvetrain noise. The rockers are basically clacking due to looseness. I will look it back up tomorrow to see how the valves are adjusted. If the importer did a tune up, and adjusted the rockers like an old fashioned 302 (and GM 350's), but the rockers are actually required to be torqued down, they will quickly loosen up and cause this noise. An easy way to tell is if the stud (or bolt) for the rocker has a shoulder, and the nut turns freely, then they are torqued down, but if the stud is straight and the nuts are crimped and get hard to turn, they are adjusted to zero lash and +3/4 turn. Sometimes there are rockers with a pedestal and bolt setup and they are torqued down also. I will look it back up tomorrow to confirm. As far as the engine light, when an error is detected, it will set a code, but if the error is not detected, the light can go out. There are hard codes and soft codes too. It can be confusing, but a scanner should give you some direction to look at. I wouldn't speculate the worst (engine rebuild), because it really sounds like just an improper tune-up.
 
I really couldn't tell much by the video.

I was't making any reference to a light coming on from the filter...but if you take the filter off...cut it open and there is a bunch of filings in it...the engine is going to have to be pulled and replaced or repaired. Looking inside a filter for filing is a common procedure to see if the engine has spun a bearing, or has a bearing failing. Hopefully it's clean inside and you move on to the next thing.
 
Yellow Check Engine light is emissions/computer related... Should have a red warning light typically with an oil can on it...
 
As mentioned pull it filter & cut it open... But don't cut it with a saw type device, the metal can will create metal particles .. Poke a hole in the can & peel the metal can away... Unless you have access to a filter cutter... (Doubt it)

I'm thinking a lifter may have popped out causing loss of pressure but I don't hear rods or mains so he might get lucky... The filter will tell the tale..
 
Yellow Check Engine light is emissions/computer related... Should have a red warning light typically with an oil can on it...

Its red when its on.

What you have is an upper end valvetrain noise.

I agree it feels like its coming from the top end / valvetrain.

I really couldn't tell much by the video.

Unfortunately the video really doesn't do it justice.
In reality the nailing is way more noticable / louder and coming from everywhere. (left and right side)

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I agree cutting/inspecting the filter such as scanning the codes is the way to go.
I will again link this thread to my friend.

I also found this video which is quite helpful as it shows how a good and also how a bad filter looks like inside

 
Rockers are of the torqued style, and NOT adjustable. The rocker bolts/nuts are torqued to 18-25 Ft.Lb Also, be aware that Ford numbers the cylinders differently, to include the firing order, 1-3-7-2-6-5-4-8.

IMG_8479.jpg
 
Today he scanned the car with the following results:

-Engine off: pass code 11(everything ok)

-Engine on: code 21 : "cooling temperature sensor out of specified range or ECT(engine coolant temperature) out of range"

I told him this probably is due to low on coolant, thermostat or faulty sensor.
I also said that he should nonetheless cut the oil filter and take a look inside.
 
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