No idea about the mitsi motors (least thats what I think I remember this is

)
but...
Have you got a blocked crank case breather? Wouldn't take much to lift the dipstick out if thats the case. And I've not run a motor without the oil cap on haha. makes a mess but you could be hearing poor valve clearances or similar with the lid off? Could see what a top tune did for it?
If you can't figure it out a leak down test may give you more info.