Sorry, should have lead with this information. Yes, it is a hydraulic roller and the couple times this has happened was at startup. Motor always ran fine until parked and this only happened after it was allowed to sit overnight.

I'll give it a go with more preload then, .095" from the bottom.

I'm still going to pop the intake and inspect the lifter. While I'm in it I can use the opportunity to rephase the distributor gear and install the Holley distributor to allow for computer controlled timing.

Do you think the damage the underside of the rocker warrants replacement? I'm going to get a new adjuster screw anyways seeing as how it's beat up.

Thanks guys.