Many of your assumptions are causing you problems, because your assumptions are wrong. First, hydraulic lifters should stay full of oil.
Bleeding the Lifters
To prevent a possible bent push rod or broken rocker
arm, it is important to bleed any excess oil out of the
lifters before they are installed.
1. Cut a 50-75 mm (2-3 in.) piece from the end of an
old push rod and chuck it in a drill press.
2. Lay a rag or shop towel on the table of the drill
press and place the lifter, open end up, on the
towel.
3. Lower the chucked push rod until it contacts the
plunger in the lifter. Slowly pump the plunger
two or three times to force the oil out of the feed
hole in the side of the lifter.
Second, there should be no clearance between the valve stem and rocker arm.
If there is no clearance how do you know the valve is closed?
Third, in a properly set-up valve train the valve springs close the valves, sealing the cylinder.
I guess by posting I was hoping that someone who knew would instruct me how to do that, rather than just make condescending remarks.
Fourth, I don't understand where you are inserting washers, but there should bem not reason for them.
I inserted washers under the rocker arms to raise them enough so that they did not compress the valve spring because it seemed that the rocker arm was holding the valve open as there was tension on the rocker arm from the valve spring.... one of my incorrect assumptions.... according to you. I would be interested in knowing how the valve could be completely closed when the rocker arm is under spring tension from the valve spring
Finally, when you reassembled the engine, did you allow the lifters to stabilize? There is a procedure in the service manual.
Is this the part you mean?
Before starting the engine, turn the engine over
slowly by hand. If it can be turned over
completely and compression is noted, the lifters
have bled down sufficiently and the engine can
be test run. If, however, it can not be turned over
completely (locks up at some point), return the
piston to TDC between the intake and exhaust
strokes and wait ten minutes to allow the lifters
time to bleed down then check for compression
again. If started with extended lifters, bent push
rods or other engine damage could occur.
You need to go back and reread the section in your manual on how to assemble and adjust a hydraulic lifter valve train.
Well, it's for sure I'm going to learn nothing from your condescending bloviation. I'm sorry I bothered you. perhaps someone who is willing and able to provide some useful information will respond. I thank God you were never my grease monkey instructor.