I am in the process of rebuilding my little 289 and I have a few questions about adjusting my valves.

First of all it's a '68 289 2v. hydraulic lifters, and the rocker studs are not positive stop.

Here's what I know:

#1 cylinder TDC, the timing pointer is at 0deg. on the mark. Compress the lifters all the way, then adjust the valve lash for intake and exhaust valves. When I do this, the rocker arm is still loose...is it supposed to be like this?

The second problem I am encountering is the sequence of adjusting the valve lash. Do I go by firing order or cylinder number? Also, what is the best way for finding TDC on the subsequent cylinders after #1? Should the timing mark line up at 0deg. for each cylinder?

Any help would be appreciated.

 

It's been awhile since I did this, so one of the experts on the forum should feel free to correct me.

On my '69 302, valves were adjusted by firing order. 1-5-4-2-6-3-7-8.
While the engine is warm, bring the cylinder to be adjusted (I.e. #1) to TDC (both valves closed)
Loosen the rocker adjustment to allow the lifter to expand fully. Wait 30 seconds or so to make sure the lifter is fully expanded.(pushrod should spin freely and move up and down a little in its shaft.)
Then, while spinning the pushrod with your free hand, tighten the valve adjuster until you can no longer spin the pushrod.
Now turn the valve adjuster another 1/4 to 1/2 turn tighter.
Turn your crankshaft 1/4 turn, and repeat the process with the next cylinder in the sequence. (Helps if your damper is marked at the quarters.)
Continue until all valves are adjusted (twice around on the crankshaft.)

The Mustang Shop Manual has a nice step-by-step for this.
Unfortunately, mine went with my '69 when I sold it.
If you're interested, you can purchase one at National Parts Depot.