Bad balance shaft/bearings?

Hey guys i got an L36 that had a knock from my work for dirt cheap. I want to use the block if its good, the tech that pulled it out said it sounded like it was coming from up top. All of the rockers are tight, i havent checked the torque yet but when i grabbed hold of the balance shaft i found this:
https://i19.photobucket.com/albums/b198/x7413I2x/431b0688.mp4

Is that most likely the knocking?

I'd say yes

I'd agree, there is no way that the balance shaft isn't making any noise while the engine runs if it makes that much noise as you just touch it.

Thats what i was thinking, but according to a few people on MNCGP thats normal and i should be checking for a collapsed lifter or broken valve spring, wouldnt the pushrods have play with a collapsed lifter?
Anyone know any tricks to getting the crank bolt out with the engine sitting on my garage floor? Lol...

It's hard to tell from that video exactly where the sound is coming from. If you are rotating the shaft back and forth the noise you hear is timing chain play and not a big deal. End to end play is also not a big deal and shouldn't cause knock.

You can wedge a screwdriver through the flywheel and have someone hold the engine upright, or use an impact gun to get that bolt out.

Impact wont budge it, the girlfriends regals crank bolt came out like nothin with the impact. Flywheel is off and i dont have the bolts for it, i guess ill have to wait until tuesday to see if the bolts are still at work.