Since there are questions about the accuracy of how the rockers are being adjusted, and since the engine runs, you might consider ditching that method and using the running method. I highly suggest getting an old valve cover and cutting the top out of it to keep oil spillage to a minimum.
While the engine is running back off the rocker until it taps. Tighten until the tapping stops, that is zero lash, then continue to tighten to preload the lifters:
(this is the debated part below that I leave to the experts here...) I have heard to continue 1/4, 1/2, 3/4 and 1 full turn depending on the source, I would trust the replies here most as this is inline specific.
I would also say that depending on the state of your valves if they are possibly burned you may need to try preloading the lifters at different levels to compensate until you find the sweet spot. I have a burned valve on mine and crank mine down 1/4 turn past zero lash, and my engine runs good, any more than that, I lose power. I just think the live action way might work good for you because you can hear what is going on.
hope this helps
