Oliver 77 valve clearance-dust on cam?

Working on an Oliver 77. It got water down the exhust, and locked up. PO pulled head, and stoped work with out reassembling. For next 15+ years it sat beside a durt road that way. Now we got it loosened up, new rings on the pistons, the valves and seats where good and to tollarance. When we put it together, we have no compression, and NO clearance on the valves. Hand holding long drill bit down to the cam, we find lots of dust.

Any thing were missing as to why weve got no clearnce on the valves?

And how do we get the pushrods to sit on the cam correct, with out pulling, or is pulling the block, then crank and cam in order?
 
Do your valves open and close when you turn the engine over? If so what clearance did you adjust the valves too? Is this a gas or a diesel? Start there first.
 
Is it dust? or Is it rust?

If dust: Can you duct tape a small piece of hose to a shop vac suction hose and suck out the dust? (caution: do not suck out gas fumes with a vaccum or the flammable fumes and the sparks from the vaccum's electric motor could go bang).
 
Its a gas. The valves are clean and free, had them all out, and cleaned on a valve grind machine. I have a tendency to leave out info.

Think its dust, head bolts all had came out, and they were full of more like dirt than rust.

Thanks.
 
Sitting open to the weather for 15 years is a good way to get the lifters to rust stuck in the bore and dust and sand to gather on the lifters, there's prob rust in the lifter cups as well.
IMO there is no way you can clean that out satisfactorily from the top
I think you need to pull the cam and lifters.
May as well pull the engine and do the job right.
 
Once we got all the valves to .012 COLD, it runs!
Its still a little weird: we had to really adjust inorder to get .012 , but it runs, so oh well.
 
You can let the intakes at 12, but set the exhaust at 16-17 cold. After you retorque the head reset the valves. Does the tube that supplies oil to the rocker arms come out in the middle of the engine or toward the back. If the latter make sure all the rocker arms are oiling well.
 
Right or wrong my dad ran and overhauled several of the Fleetline OLIVERS and he always set the intake and exhaust valves at .015, might hear them click a little, but never burnt a valve on 60's, 77's, 88's , all gas burners.
 

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