Hi Ray O, you were right:
Well, I took my ES350 to the dealer for the 10,000 mile scheduled service and told them about the ticking sound heard when the engine was cold and when accelerating or driving under load - like up a hill. The diagnostic maintenance guy got in the car with me and we drove around the area, but the engine was warmed up and I could barely detect the noise.
We returned to the dealer and he got an identical car off the lot and we started the drive out of the dealers lot. He heard the ping (tick) sound immediately.
He told me that the Lexus engineers had cut part of the skirt off the pistons (I guess compared to the Avalon 3.5 L), resulting in a lighter piston. He said that the sound we heard was "piston slap" and offered no excuse or remedy!
My advise to all future Lexus 350 buyers is don't buy it. Instead, buy the Avalon. It has the unmessed-up 3.5 liter engine and runs on recommended regular gasoline. The car is quieter, has reclining rear seats, and I think they even put in the same 6-speed tranny.
Graybeard