Seems like there's something about the lifters often make a tapping noise that is normal in some saturns as they age, but I'm not sure on that, and not sure if that's what is happening in your car. I'd check the oil level, since the s-series is known for burining some oil.
As far as the crappy gas milage, if you haven't replaced the ECTS, that might be a good investment of about $10-15. Cleaning the throttle body might be good. Might be some other tune up things that could help the economy, and maybe even help the noise while you're at it. |