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valves loosening

I wonder if your lifter might be the problem? As for the cam, a XE268H works really well with a SB. Not sure if this would be to small for a BB.
It's wierd that you are going through this because I recently had my #1 intake rocker arm stud snap at WOT. I removed all of my SB studs and roller tipped rockers. I will be replacing them with 1.6 full roller rockers and BB studs. I get the goodies for Christmas so I'll have to wait but it's worth it. I should of done this initially during my top-end rebuild.
 
Didn't that one pushrod simply fail? Looks like the ball is pushe into the rod. If that's the case, the loosening makes sense, the rod keeps changing length. It seems new pushrods are in order, unless of course you really want to do a new cam. If that's the case, then obviously the cam's shot!!! LOL
 
I'd still check the actual valve throw with a dial indicator. Also, camshafts are case hardened, once the hard casing is worn through (about .025/.030), the material underneath is like mashed potatos. The wear will excellerate rapidly once this happens. Like < a hundred miles. You should notice a reduction in power or a slight vibration as 1 cylinder isn't doing it's job. You can feel exhaust pulses too.

What oil are you using?
 
using rotella T 15w40

of course i have only owned the car for 6 months. no idea what was in it up til then.

yeah the ball being pushed into the rod is exactly what it looks like.

i put the new rods in last night. adjusted them with the above mentioned procedure and started it up.

all rockers are oiling themselves and it is idling smoothly. i need to get the dial indicator and check them out now.


oh and the comp cams site says that the 268H is the biggest that can be put in on a stock torque converter
 

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