How does the engine run after loosening the valve adjustments? It might be necessary to go through the complete adjustment sequence to be sure someone hasn't made a major blunder while assembling the engine. Have you removed the pushrod side cover to see how far the plungers are recessed into the lifter body?
Jerry

"It is better to be silent and be thought a fool than to speak and eliminate all doubt!" - Abraham Lincoln
Cringe and wail in fear, Eloi- - - - -we Morlocks are on the hunt!
There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self. - Ernest Hemingway
Love your enemies and drive 'em nuts!