When you take the valve cover off and put the bleed down tool on the rocker you should be able to bleed the lifter down. If you can not bleed the lifter down then the push rod is too long.

Collapsed Tappet Gap = Allowable .075-.175, Desired .100-.150

Here is how the book says to do it.
To determine whether a shorter or a longer push rod is necessary, perform the following check:

1. Install an auxiliary starter switch. Crank the engine (6007) with the ignition switch in OFF until the No. 1 piston (6108) is on TDC after the compression stroke.

2. With the crankshaft (6303) in the positions designated in the following Steps 3, 4 and 5, position the hydraulic tappet compressor Tappet Bleed Down Wrench T71P-6513-B on the rocker arm (6564). Slowly apply pressure to bleed down the hydraulic valve tappet until the plunger is completely bottomed. Hold the valve tappet in this position and check the available clearance between the rocker arm and the valve stem tip with a feeler gauge. If the clearance is less than specifications, install a shorter push rod. If the clearance is greater than specifications, install a longer push rod.



3. With the No. 1 piston at TDC at the end of the compression stroke (Position No. 1), check clearances on the following valves:

No. 1 Intake No. 1 Exhaust

No. 3 Intake No. 4 Exhaust

No. 7 Intake No. 5 Exhaust

No. 8 Intake No. 8 Exhaust

4. After checking the clearance on these intake valves and exhaust valves, rotate the crankshaft 360 degrees to Position No. 2, then check the following valves:

No. 2 Intake No. 2 Exhaust

No. 4 Intake No. 3 Exhaust

No. 5 Intake No. 6 Exhaust

No. 6 Intake No. 7 Exhaust


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