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I guess it could be VANOS. If my windows are rolled down I can hear mine sometimes. But, the only reason I don't think that's the case is that no one else has reported hearing it. Also, I have to really try to listen on my car. Granted, the S65 is a new engine and VANOS might louder in it, but like Randy said, I imagine that BMW would take every measure possible in order to keep noises like that to a minimum.
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