I really don't understand what you mean by "chugging", but I would make absolute certain the valves are NOT sticking, and then I would play around with the ignition timing. You may NOT be able to set the timing according to the book and have it run correctly.
The valve clearance gap is slighty irrelevant at this point. as long as you still have some clearance when the engine is warmed up, the incorrect gap should not be causing those problems.
I think the info you want on how far the rocker adjustment screw travels per turn will be in a "Machinery's Handbook".
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