Looks like the Morel lifters that Hughes Engines sell will solve the problem. We tried a pair of them in the block and it seems to work. Only problem is the cylinder heads have to come off to change lifters so that is an extra few hours of work. Engine is in the dyno so it is easier than if it was in the car.

This engine has the new Trick Flow heads. First time I've seen the SB Trick Flow heads. They look really nice. Engine also has a Holley Sniper setup on it so it should be a great street combo.