Newbie here

NAW set the rockers first
The nut is kind of a locking nut or should be ... put the flat side against the washer and the rounded end up... if you notice you can't thread them on by hand all the way Or you shouldn't be able to ... thats the locking part for the adjustability...
The easyest way I've found to adjust them is ....
rotate the motor by hand and Just as the exhaust push rod starts up adjust the intake of that cylender. rotate the push rod with your fingers just as you feel it stop or feel drag on it.. stop and take another 1/4 to 1/2 a turn. that should be the adjustment ...
Then rotate the motor by hand and just as the intake starts to close from fully open stop and adjust the exhaust valve of that cylender.. the same way.. and repeat for all rockers.

Good luck
tim

does it look somethning like this
[IMG]file:///C:/DOCUME%7E1/dad/LOCALS%7E1/Temp/moz-screenshot.jpg[/IMG][IMG]file:///C:/DOCUME%7E1/dad/LOCALS%7E1/Temp/moz-screenshot-1.jpg[/IMG]

check out this link on the second or third page theres a picture of the rocker assembly is that what yours looks like

http://compcams.com/technical/Catalogs/106-07/52-55.pdf

Tim

ok, here is an online image of what my engine set-up is...but this one looks like it's bent and rusted to crap!

http://www.motorheadsperformance.com...ush%20Rods.jpg

Google Image Result for http://www.autoguide.net/apf/images/agfor460lb.jpg

here's a better shot of what my rockers/engine look like (this is not my engine)

it's a straight bolt on assembly with 4 pieces: the rocker, the fulcrum, the washer, and the bolt.

and here's a close up of the rocker assembly....
Google Image Result for http://images.carcraft.com/techarticles/ccrp_0602_13_z+big_block_ford_engine_build+rocker_ arms.jpg

OK.

You need the valves you are working on closed, (But doing it like Tim said above is fine too) so put that CYL to TDC, and take the slack out of the rocker until it touches the pushrod, that's zero lash, then turn 1/2 turn of the nut.

Repeat for all 8 cylinders and that will get you close enough to start it.
If it's a bit clacky after that, then turn each nut another 1/4 turn across the board then re-start and listen. All should be well if there are no issues with the motor.

FE

WOW LOVE YOU GOT SOME BENT PUSHRODS.. in that first pic.. bent rods.. they should be streight...
as for the rockers there just bolt down type no adjustment... just torque them down and go... but you need to get some new push rods...
Tim

oops didn't read the whole post thats not your motor... OK .. but those are you rockers right? if so there just bolt downs it would be best to make sure there is no prusher on them when you torque them down..
Tim

Since your engine was filled with lake water and lake water is loaded with fine dirt and other contaminants I personally think you should back up a bit. First off I think you would benefit a lot by buying a Chiltons or some kind of motor manual. Second, since it doesn't sound like you have intentions of at least pulling the heads, I would pull both valve covers and remove the oil pan drain plug. Then I would get a 5 gallon can of diesel fuel and slowly pour it over the top of both heads to flush as much silt and trash out as possible. The fuel is high detergent and has some lubricating qualities. Once you have done this, I would then refill the crankcase with cheap oil and prime the engine while turning it slowly by hand. After a few minutes, I would change the oil and filter and do it again. After a couple of times doing this then I would go ahead and put decent oil and another filter in. Next, since you did try to crank it with water in the cylinders I would remove all pushrods and roll them on a plate of glass to make sure none were bent. Once that is done, I would definitely spray each cylinder again with just enough WD 40 to fog the cylinder walls. I would then locate top dead center/compression on #1 cylinder and begin the valve adjustment procedure using your new book as reference to firing order and tightening sequence. Just prior to trying startup, I would reprime the oil system and hope for the best. I would run the engine for no more than 10 or 15 minutes and then change the oil and filter again. Then, you could possibly be ready to go on your "chick hunt".