ka24e valve tick help

[iveexcaped3]

ok my engine had a tick from the valve cover area. i was thinking it might be a valve tick or timing chain tensioner. my engine decided to die today. i checked the oil level and there was nothing in it. (30 minutes ago it was full) added more oil and tried to turn it over it cranks but no start. im thinking the timing chain came loose skipped a tooth left valves open leaking out oil. it was smoking white. so im going to guess its timing chain i just want to know if some of you think it might be some thing else.
just pulled off the valve cover off this is what it looks like....
http://www.facebook.com/photo.php?fbid=225173087506176&set=a.194769500546535.44015.100000404580220&type=1

is there suppose to be this much slack in the chain??? i never done one of these motors before, any thing will helphttp://www.facebook.com/photo.php?fbid=225173117506173&set=a.194769500546535.44015.100000404580220&type=1&pid=711354&id=100000404580220