Adjusting the valves
Turn your attention to cylinder number one. Rotate the engine over
clockwise, watching the intake lifter of that cylinder. Keep rotating the
engine until the intake lifter rises and then comes almost all the way back
down. Tighten the rocker arm adjusting nut on the exhaust valve of the
same cylinder, slowly until you reach zero lash. (The rocker arm should
have no slack) Now tighten the nut another one half to three quarters of
a turn. This will give your hydraulic lifter the proper pre-load. Rotate the
engine clockwise again and watch for the exhaust valve to just start to
open, this is the position to adjust the intake valve of the same cylinder.
Repeat this procedure for the remaining cylinders.