John,
My personal preference for finding TDC doesn't rely on the valves, but the timing mark on the flywheel.
When building a new engine, we would put the lifters in a coffee can full of oil for several days to "fill" them prior to installation.
I would think you could install the engine as is, and in the course of starting , it will automatically fill the lifters and the rig will run. It might take a moment to smooth out, but the lifters WILL pump up and things will be fine.
Stuart
