Hyd lifters don't have an adjustment. They are kind of automatic. The adjustment is made at the rocker arm. Without a book in front of me (of which you should use) you lossen the rocker arm to where they are lose. Crank up the eng at idle, tighten the rocker arms until they are just quite. Then you go to each one and make it chatter, tighten it till it is quite, then losen a quarter of a turn on the rocker arm nut. That is a rough procedure. Be sure to use NEW rocker arm nuts. If not the possibility of the nut backing off is very possible.
One more thing. Your going to make a mess with oil on the low side of the head. They make shields that you can bolt in place to keep the oil in the top of the head. REMEMBER "DON'T REV THE ENGINE" you might get a face full of oil out the end of the push rod.
This is done by loosening the valves, then set the lifter you want to adjust to be on the TDC of the compression stroke (both intake & exhaust valve closed) so the lifter is riding on the cam base circle (this doesn't have to be very precise, if both valves are closed at or around TDC you know they're on the base circle)
Preoil the engine (or do this just after you shut it down)
Then roll the pusrod between your fingers and adjust untill it becomes harder to roll, add another 1/4 or 1/2 turn (or as otherwise mentioned in manual) and it should be fine.
You can also set them with the engine running but that can be quite messy, loosen the nut until the lifter starts clacking, tighten until clacking stops and add another 1/4 or 1/2 turn.
I've set mine in a different way, I used a 0.008" feeler gauge (you can use 0.010 for a first try, can go as low as about 0.006") and set it like the way described above. When the lifter bottoms out I remove the feeler. This way you'll have 0.008" of movement left in the lifter, enough to eliminate valvetrain vibrations. The benefit is that the lifter won't absorb as much of the initial lift (especially on aggressive lobes).
Do NOT "loosen them after they're quiet" as indicated a couple of posts up!!! This will result in poor running and valvetrain damage!! You adjust them by loosening and setting to zero-lash, then tightening 1/2-turn.
Set the engine at #1 TDC and set Intakes 1-2-5-7 and Exhausts 1-3-4-8; then turn the crank one full revolution (which will put you at #6 TDC) and set Intakes 3-4-6-8 and Exhausts 2-5-6-7.
Loosen each rocker nut until you feel up-down play in the pushrod (more accurate than turning the pushrod with your fingers, especially if you haven't done it before), then tighten the rocker nut slowly until the play is gone, then tighten 1/2-turn.
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