Don,
If the lifters are not compressing it could mean acouple of things. One-they have not bleed down, two -( more likely)the oil that is in them has turned hard and caked. Hyd lifters don't really go bad.Sometimes the spring will get weak and then the lifter should be replaced. Most of the time they just need cleaning. You should take them apart and soak them in carb or parts cleaner for acouple of days. Here is a link on how to do it.http://chevy.tocmp.com/1959_60shop/59sms0802.htm Hope this helps.
Glenn,
