When I had small blocks and ran hydraulic cams I would set the initial preload to zero on the stand and the do the final adjustment in car with the engine running.
I don't doubt the "engine off" procedure works but I think the running engine procedure eliminates any possible misadjustments since the lifters will be pumped up with oil.
This is the engine running procedure I have always used.
Adjust only one side of the engine at a time.
Use oil restrictors (deflectors) on the rocker arms, or cut the top up off an old valve cover to give enough access for valve adjustment.
I personally like having the extra room by using the clips but it will get messier and I have also used water soaked rags on top of the headers to keep oil burning to a minimum.
Start the engine and allow it to warm up to operating temp.
Turn off the engine
Remove one valve cover and install your deflector clips or modified valve cover.
I also like to jack up the side I am working on to keep oil from running off the head if using rocker arm clips.
Start the engine back up.
Begin to loosen one of the rocker arm adjusting nuts. You should hear the valvetrain just start to "clatter".
Slowly tighten the rocker nut down until the "clatter" just stops
Tighten the nut 1/4 turn and wait about 10 seconds to let the engine adjust (you will hear the engine smooth out) I like to go total 1/2 turn but in 1/4 turn increments.
Continue this procedure on each of the remaining the valves.
Turn off the engine
Remove your oil splash apparatus and re-install the valve cover
Repeat these steps on the other side of your engine.
I have always done it this way with hydraulic flat tappets on a SBC on my BBC with a mechanical roller I do a hot lash adjustment with the engine off using the I.O.E.C. technique but I still do one side at a time.
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