The VANOS system requires over 1400 psi of oil pressure to operate. My 2000 M5 occassionally makes the diesel valve sound briefly during start up especially whne it is real hot out. It is normal as sometimes the required oil pressure isn't immediately high enough. They can "tune" the ECU to correct this if it is persistent so in your case, a persistent valve clatter probably should have been/should be adjusted. As for the cam semsor, that sounds like a separate item and may have contributed to the constant VANOS valve noise.