My biggest concern would be the #1 exhaust valve that took 2.5 turns to get in spec, was it tight or loose? Tight could mean the valve is sucking up, loose could be a lifter, cam, or even rocker issue. I use the same method that Cab described.
Glenn is 100% correct. If it were mine I'd be taking a look with the intake off. Twice I've found issues when lash opened up .007" (with-in 25 passes). Saved me a ton of grief. Also use Cab's method of setting lash, quick, and precise. My cam is spec calls or .020" hot. It gets set at .014"/.015" cold with iron block, -1 heads.
Doug
