Tsal,
This sounds like a nasty introduction to the art of airhead maintenance. I agree with MrRiden, and if it's bad news, at least you'll know immediately.
Find out from the previous owner if top-end maintenance was done recently. Perhaps something was left loose, or, worst-case, the rocker shaft assembly was installed upside-down (or backwards, I can never remember which, which is why I have 2 shop manuals).
If the latter, the mechanism would have run fine for a while (test ride), but eventually the residual oil would heat up, run off, and leave the steel to meet the steel, with noisy and expensive results.
Needless to say, you should also check the other head for damage or misassembled parts. If you have any question about what damaged or worn-out precision parts look like, you need to find a good mechanic.
Keep us posted.