RedGreen,
Judging from the Tech-Tips, that sure is the proper sequence. I attempted to draw a little cartoon that showed valve location during each firing cycle....my head almost exploded.
I would recommend setting the valves one cylinder at a time as Tiny suggested. This will guarantee success, plus will allow you to see if any individual push rod might not be seated in the lifter (solids I presume). With the engine on a stand, this procedure isn't daunting at all.
I think if you add .005 when setting them cold, you can be done with this task for good.
Be sure to follow the mfg's directions on breaking in the camshaft. I have read articles dealing with the lack of extreme pressure additives in most modern motor oils. Many folks use a specific API rated oil to save the lobes and lifter from immediate destruction.
Stuart
